MONTHLY

ECONOMIC

REVIEW

BANK OF TANZANIA

February 2020

i

Contents

1.0 Prices and Food Stocks ................................................................................................................. 1

1.1 Inflation ...................................................................................................................................... 1

1.2 Food Stocks ............................................................................................................................... 1

1.3 Prices of Food Crops ................................................................................................................. 2

1.4 Domestic Fuel Prices ................................................................................................................. 2

2.0 Monetary and Financial Markets .................................................................................................... 3

2.1 Money Supply and Credit .......................................................................................................... 3

2.2 Interest Rates ............................................................................................................................ 4

2.3 Financial Markets ....................................................................................................................... 5

2.3.1 Treasury Bills Market ................................................................................................................. 5

2.3.2 Treasury Bonds Market ............................................................................................................. 5

2.3.3 Interbank Cash Market .............................................................................................................. 6

2.3.4 Repurchase Agreements ........................................................................................................... 6

2.3.5 Interbank Foreign Exchange Market ......................................................................................... 6

3.0 Government Budgetary Operations ............................................................................................... 7

4.0 National Debt ................................................................................................................................. 7

4.1 External Debt ............................................................................................................................. 7

4.2 Domestic Debt ........................................................................................................................... 8

5.0 External Sector Performance ....................................................................................................... 10

5.1 Exports ..................................................................................................................................... 10

5.2 Imports ..................................................................................................................................... 11

5.3 World Commodity Prices ......................................................................................................... 12

6.0 Economic Developments in Zanzibar .......................................................................................... 12

6.1 Inflation .................................................................................................................................... 12

6.2 Government Budgetary Operations ......................................................................................... 13

6.3 External Sector Performance................................................................................................... 14

Statistical Tables ....................................................................................................................................... 16

Glossary .................................................................................................................................................... 26

1

1.0 Prices and Food Stocks

1.1 Inflation

Annual headline inflation declined to 3.7 percent

in January 2020 from 3.8 percent in December

2019 mainly due to decrease in prices of some

food items (Chart 1.1 and Table 1.1). The rate

remained within the country medium-term target

of 5.0 percent, and significantly below the

convergence criteria for East African Community

(EAC) and Southern African Development

Community (SADC) of a maximum of 8.0 percent

and between 3.0 - 7.0 percent, respectively. On

monthly basis, headline inflation was 0.4 in

January 2020 compared with 0.5 percent

recorded in the similar month of 2019.

Chart 1.1: Annual Inflation Developments

Source: National Bureau of Statistics

Annual inflation for food and non-alcoholic

beverages decreased to 5.7 percent in January

2020 from 6.3 percent in the previous month, due

to slowdown in prices of some food items mainly

fish, cassava, beans and cooking bananas.

Monthly inflation for food and non-alcoholic

beverages was 0.9 percent in January 2020

compared with 1.4 percent in the January 2019.

Conversely, annual non-food inflation rose to 2.4

in January 2020 from 2.3 percent in the preceding

month, driven by petrol prices. Inflation rate for

energy and fuels increased to 4.0 percent in the

year ending January 2020 from 2.8 percent

recorded in the year to December 2019. On

monthly basis, energy and fuel inflation was

negative 0.3 percent in January 2020 compared

with negative 1.4 percent of the corresponding

month of 2019.

Table 1.1: Inflation Developments

Base December 2015 = 100

Source: National Bureau of Statistics

Annual inflation for all items excluding food and

energy remained moderate at 2.1 percent as in

December 2019, but was lower than 3.1 percent

recorded in January 2019. On monthly basis, non-

food non-energy inflation was 0.2 percent,

compared with 0.3 percent recorded in January

2019.

1.2 Food Stocks

During January 2020, the National Food Reserve

Agency (NFRA) sold 8,901.4 tonnes of maize to

private traders, World Food Program and Prisons

0

2

4

6

8

10

12

Jan

-17

Apr-

17

Jul-

17

Oct-

17

Jan

-18

Apr-

18

Jul-

18

Oct-

18

Jan

-19

Apr-

19

Jul-

19

Oct-

19

Jan

-20

Headline Food Non-food Core

Main groups Weight Jan-19 Dec-19 Jan-20 Jan-19 Dec-19 Jan-20

Food and non-alcoholic beverages 38.5 1.4 1.3 0.9 0.7 6.3 5.7

Alcoholic, tobacco and narcotics 3.7 0.1 0.2 0.0 2.2 0.6 0.5

Clothing and footwear 8.3 0.5 0.5 0.3 3.7 2.2 2.1

Housing, water, electricity, gas and

other fuel 11.6 -0.3 -0.6 0.1 11.7 4.4 4.8

Furnishing, housing equipment and

routine maintenance of the house 6.3 0.3 0.2 0.2 3.9 2.7 2.5

Health 2.9 0.1 0.0 0.0 1.0 1.5 1.4

Transport 12.5 -0.8 0.7 0.1 4.0 0.8 1.7

Communication 5.6 0.2 0.3 0.2 -2.4 1.1 1.1

Recreation and culture 1.6 0.3 0.3 0.1 0.2 1.4 1.1

Education 1.5 1.4 0.0 1.0 2.0 1.6 1.3

Restaurants and hotels 4.2 0.4 0.0 0.0 2.6 3.2 2.8

Miscellaneous goods and services 3.1 0.2 0.5 0.0 2.5 1.8 1.6

All Items (headline inflation) 100.0 0.5 0.6 0.4 3.0 3.8 3.7

Other selected groups:

Food and non-alcoholic beverages -

combining food consumed at home and

food consumed in restaurants 37.1 1.5 1.3 1.1 2.3 6.9 6.4

Energy and fuels - combining electricity

and other fuels for use at home with

petrol and diesel 8.7 -1.4 -1.3 -0.3 15.7 2.8 4.0

All items less food (non-food) 62.9 0.0 0.1 0.1 5.1 2.3 2.4

All items less food and energy 54.3 0.3 0.5 0.2 3.1 2.1 2.1

Monthly change Annual change

2

Department. This brought the stock of food1 held

by the NFRA to 43,597 tonnes at the end of

January 2020 from 52,498 tonnes at the end of

the preceding month (Table 1.2).

Table 1.2: Food Stocks Held by National Food

Reserve Agency

Tonnes

Source: National Food Reserve Agency

1.3 Prices of Food Crops

Wholesale prices of all major food crops2

increased in January 2020 compared with prices

recorded in the preceding month, except of finger

millet (Table 1.3). Prices of maize, rice and beans

continued to rise on consistent basis mainly due

to increasing demand for food from neighbouring

countries and to some extent domestic demand

owing to production shortfalls experienced in

north and lake zones during the 2018/19 crop-

season.

Table 1.3: Wholesale Prices of Major Food Crops

TZS per 100kg

Source: Ministry of Industry and Trade

1 Comprise of maize only.

Chart 1.2: Annual Change in Wholesale Prices of

Major Food Crops Percent

Source: Ministry of Industry and Trade, and Bank of Tanzania

computations

1.4 Domestic Fuel Prices

In line with price movements in the world market,

domestic pump prices of petrol, diesel and

kerosene were low in January 2020 compared

with prices recorded in the corresponding month

of 2019. Diesel recorded the highest decline of

11.2 percent to TZS 2,228.68 per litre, followed by

petrol at 9.3 percent to TZS 2,273.62 per litre.

Price of kerosene averaged TZS 2,193.57 per

litre, which was an annual decline of 8.5 percent.

On monthly basis, prices of diesel and kerosene

declined by 0.5 percent and 0.2 percent,

respectively, while that of petrol increased by 0.9

percent (Chart 1.3).

2 They include maize, rice, beans, sorghum, and round potatoes.

2016 2017 2018 2019 2020

January 125,668.0 86,833.5 91,947.0 93,037.2 43,596.7

February 88,414.0 86,444.0 91,312.7 85,524.5

March 68,727.0 86,443.8 83,650.3 78,336.3

April 64,825.0 86,278.0 73,467.7 68,747.8

May 63,341.0 74,826.0 68,893.4 68,057.7

June 61,837.5 70,393.0 63,843.9 67,335.9

July 49,632.0 68,697.0 62,288.0 67,410.1

August 59,832.0 78,434.0 62,317.3 68,407.0

September 86,545.0 85,403.0 78,224.0 61,710.8

October 90,905.0 89,248.0 87,435.0 55,852.5

November 90,900.0 93,353.7 92,402.0 52,726.9

December 89,691.8 92,074.0 95,534.1 52,498.1

Crop Nov-18 Dec-18 Jan-19 Nov-19 Dec-19 Jan-20 Jan-20 to Ded-19

Maize 42,362.9 47,174.5 49,011.1 84,739.3 87,591.8 92,795.8 5.9

Rice 153,493.1 155,522.6 160,282.9 185,486.3 188,754.6 189,486.2 0.4

Beans 158,802.1 158,694.4 161,710.6 197,343.3 210,864.6 218,789.3 3.8

Sorghum 72,523.8 75,592.3 74,328.7 109,169.4 104,842.7 106,981.3 2.0

Round potatoes 88,209.2 85,526.3 80,484.7 70,560.7 69,485.3 72,527.9 4.4

Finger millet 136,785.7 141,113.1 136,845.5 143,568.3 130,428.3 127,849.8 -2.0

-75

-50

-25

0

25

50

75

100

125

Jan

-17

Apr-

17

Jul-

17

Oct-

17

Jan

-18

Apr-

18

Jul-

18

Oct-

18

Jan

-19

Apr-

19

Jul-

19

Oct-

19

Jan

-20

Maize Rice Beans

-45

-30

-15

0

15

30

45

60

Jan

-17

Apr-

17

Jul-

17

Oct-

17

Jan

-18

Apr-

18

Jul-

18

Oct-

18

Jan

-19

Apr-

19

Jul-

19

Oct-

19

Jan

-20

Sorghum Round potatoes Finger millet

3

Chart 1.3: Evolution of Domestic Pump Prices

Source: National Bureau of Statistics

2.0 Monetary and Financial Markets

2.1 Money Supply and Credit

Monetary aggregates continued to register strong

growth in the year ending January 2020, in

response to the sustained accommodative

monetary policy and recovery of credit to the

private sector. Extended broad money supply

(M3) registered an annual increase of TZS

2,351.0 billion to TZS 28,114.2 billion in January

2020, translating into annual growth rate of 9.1

percent compared with 3.3 percent in January

2019 (Table 2.1 and Chart 2.1). The expansion of

M3 was on account of accumulation of net foreign

assets owing to improvement in the current

account balance, and expansion of credit to

various economic activities (Chart 2.2). Likewise,

broad money supply (M2)—that excludes foreign

currency deposits—recorded an annual growth of

11.4 percent compared with 2.3 percent

registered in January 2019.

Chart 2.1: Developments in Money Supply

Source: Bank of Tanzania, banks and Bank of Tanzania computations Note: LHS denotes left hand scale; and RHS, right hand

scale

Table 2.1: Money Supply and its Main Components

Source: Bank of Tanzania, banks and Banks of Tanzania computations Note: “---“ denotes a change that exceeds 100 percent; and o/w, of which

Chart 2.2: Annual Change in Major Sources of

Money Supply

Billions of TZS

Source: Bank of Tanzania, banks and Bank of Tanzania

computations Note: NFA denotes net foreign assets

Net foreign assets of the banking system recorded

an annual growth of 13.9 percent in January 2020,

1550

1800

2050

2300

2550Jan

-17

Apr-

17

Jul-

17

Oct-

17

Jan

-18

Apr-

18

Jul-

18

Oct-

18

Jan

-19

Apr-

19

Jul-

19

Oct-

19

Jan

-20

Petrol Diesel Kerosene

0

2

4

6

8

10

12

0

4,750

9,500

14,250

19,000

23,750

28,500

Jan

-19

Feb-1

9

Mar-

19

Apr-

19

May-1

9

Jun

-19

Jul-

19

Aug

-19

Sep

-19

Oct-

19

No

v-1

9

De

c-1

9

Jan

-20

Perc

ent

Billions o

f T

ZS

M3 Money stock (LHS) M3 growth (RHS)

Jan-19 Dec-19 Jan-20 Jan-19 Dec-19 Jan-20

Net foreign assets of the banking system 10,371.9 12,034.5 11,811.0 -8.9 13.2 13.9

Bank of Tanzania 10,290.4 12,063.1 11,973.5 -12.6 12.8 16.4

Banks 81.6 -28.5 -162.6 --- -54.4 ---

Net domestic assets of the banking system 15,391.2 16,278.6 16,303.2 13.5 7.1 5.9

Domestic claims 22,229.4 23,589.3 23,692.0 6.3 6.2 6.6

Claims on central government (net) 4,064.4 3,893.9 3,882.3 1.9 -13.1 -4.5

o/w Securities held by banks 5,097.4 5,169.3 5,323.9 -5.7 3.5 4.4

Claims on the private sector 18,165.0 19,695.4 19,809.7 7.3 11.1 9.1

Other items net -6,838.2 -7,310.7 -7,388.8 -6.9 4.2 8.1

Extended broad money supply (M3) 25,763.1 28,313.1 28,114.2 3.3 9.6 9.1

Foreign currency deposits 6,796.7 7,032.9 6,982.8 6.1 3.7 2.7

Broad money supply (M2) 18,966.4 21,280.3 21,131.3 2.3 11.8 11.4

Other deposits 7,362.3 7,955.1 7,840.0 2.3 8.7 6.5

Narrow money supply (M1) 11,604.1 13,325.1 13,291.4 2.3 13.7 14.5

Currency in circulation 3,709.2 4,221.8 4,030.4 0.9 9.2 8.7

Transferable deposits 7,894.9 9,103.3 9,261.0 2.9 15.9 17.3

Item

Annual growth (%)

Outstanding stock

(Billions of TZS)

-2,400

-1,600

-800

0

800

1,600

2,400

3,200

4,000

Jan

-19

Feb-1

9

Mar-

19

Apr-

19

May-1

9

Jun

-19

Jul-

19

Aug

-19

Sep

-19

Oct-

19

No

v-1

9

De

c-1

9

Jan

-20

NFA of the banking system Credit to the private sector Net credit to the Government

4

up from a contraction of 8.9 percent in January

2019. This was due to an increase in holdings of

the Bank of Tanzania following continuous

purchase of foreign exchange from the domestic

market, mostly emanating from export proceeds

of gold, manufactured goods, and tourism related

activities.

Domestic credit maintained its pace, recording an

annual growth of 6.6 percent in January 2020

compared with 6.3 percent recorded in the

corresponding month of 2019. This recovery was

reflected in the expansion of credit to the private

sector, which outweighed the contractionary

impact of central government borrowing from the

banking system. During the year ending January

2020, private sector credit grew by 9.1 percent

compared with 7.3 percent in the year ending

January 2019 (Chart 2.3). This development was

in response to increase in loanable funds resulting

from sustained accommodative monetary policy,

expansion of various economic activities, and

measures implemented by the Government to

improve business environment.

Chart 2.3: Credit to Private Sector by Banks

Source: Bank of Tanzania, banks and Bank of Tanzania

computations

Note: LHS denotes left hand scale and RHS right hand scale

During the period under review, growth of credit

was prominent in building and construction,

agriculture, transport and communication and

personal related activities (Table 2.2). It is worth

noting that credit to manufacturing activities

registered a turnaround, recording a growth of 3.1

percent from a contraction of 0.8 percent in the

preceding month. In terms of proportion to total

outstanding credit to the private sector, personal-

related activities and trade continued to account

for the largest share at 29.6 percent and 17.9

percent, respectively (Chart 2.4).

Table 2.2: Annual Growth of Credit to Selected

Economic Activities

Percent

Source: Banks and Bank of Tanzania computations

Chart 2.4: Share of Banks’ Outstanding Credit by

Major Economic Activities

Percent

Source: Bank of Tanzania, banks and Bank of Tanzania computations Note: Other economic activities include fishing, forest, hunting, financial intermediaries, mining and quarrying, real estate, mortgage, leasing, tourism, warehousing and storage, gas, water, education and health

2.2 Interest Rates

Commercial banks interest rates offered on

deposits and those charged on loans exhibited

mixed developments across maturity spectrum,

while maintaining a general downward trend

observed over the recent months in line with

liquidity easing monetary policy stance. Overall

time deposit rate decreased to an average of 6.89

percent in January 2020 from 7.34 percent in

2

4

6

8

10

12

0

4,000

8,000

12,000

16,000

20,000

Jan

-19

Feb-1

9

Mar-

19

Apr-

19

May-1

9

Jun

-19

Jul-

19

Aug

-19

Sep

-19

Oct-

19

No

v-1

9

De

c-1

9

Jan

-20

Perc

ent

Billions o

f T

ZS

Stock of credit to the private sector (LHS) Credit growth (RHS)

Economic activity Jan-19 Jun-19 Sep-19 Oct-19 Nov-19 Dec-19 Jan-20

Building and construction -11.0 -0.1 62.7 63.7 71.5 72.6 60.2

Agriculture 22.6 40.6 68.5 87.2 85.2 90.1 30.4

Transport and communication -4.9 -4.5 0.6 3.2 5.0 14.6 16.6

Personal 52.7 17.4 24.0 13.7 11.8 9.3 12.2

Trade -5.6 -4.2 -0.3 0.3 1.5 4.5 6.8

Mining and quarrying 22.8 28.4 45.1 45.5 22.2 13.2 3.2

Manufacturing 11.0 14.5 3.0 3.3 1.0 -0.8 3.1

Hotels and restaurants -3.5 -11.2 -11.8 -12.6 -12.1 -9.1 -10.328.9

7

18.4

4

11.5

7

7.8

0

5.1

8

3.9

7

3.3

0

2.0

7

18.7

0

28.7

17.7

10.9

9.5

5.5 5.8

2.8

1.0

18.1

29.6

17.9

10.9

9.3

5.5 5.8

2.7

1.0

17.4

Pers

onal

Tra

de

Man

ufa

ctu

rin

g

Agri

culture

Tra

nsp

ort

and

com

mu

nic

ation

Build

ing a

nd

con

str

uction

Ho

tels

a

nd

resta

ura

nts

Ele

ctr

icity

Oth

er

econ

om

icactivitie

s

Jan-19 Dec-19 Jan-20

5

January 2019, but slightly higher than 6.79

percent registered in the preceding month. One-

year deposit rate averaged 9.27 percent, up from

8.66 percent in January 2019 and 8.90 percent in

the preceding month (Chart 2.5). Overall lending

rate decreased to an average of 16.79 percent

from 17.23 percent in January 2019, but was

higher than 16.76 percent in the preceding month.

Meanwhile, one-year lending rate declined to

15.51 percent from 17.01 percent in January 2019

and 16.28 percent in December 2019.

Consequently, the spread between one-year

deposits rate and one-year lending rate narrowed

to 6.24 percentage points in January 2020 from

7.38 percentage points in the corresponding

month of 2019.

Chart 2.5: Selected Banks’ Average Lending and

Deposits Interest Rates

Percent

Source: Banks and Bank of Tanzania computations

2.3 Financial Markets

Financial markets were characterized with

adequate level of shilling liquidity consistent with

monetary policy stance. This was evident in

softening of the money market interest rates and

oversubscriptions recorded in the longer tenure of

the government securities auctions.

2.3.1 Treasury Bills Market The Bank of Tanzania conducted two Treasury

bills auctions in January 2020, maintaining a

tender size of TZS 107.7 billion per auction. Total

bids amounted to TZS 174.9 billion, where the first

auction was under-subscribed by TZS 72.8 billion

and the second auction was over-subscribed by

TZS 33.3 billion. The Bank accepted bids worth

TZS 136.0 billion, mainly for government financing

needs. Overall Treasury bills yield decreased

further to an average of 5.64 percent from 5.81

percent in December 2019 (Chart 2.6).

Chart 2.6: Performance in Treasury Bills Market

Source: Bank of Tanzania Note: LHS denotes left hand scale; and RHS, right hand Scale

2.3.2 Treasury Bonds Market In January 2020, the Bank of Tanzania conducted

2-,10- and 15-year Treasury bonds auctions worth

TZS 137.0 billion, TZS 122.0 billion and TZS

109.0 billion, respectively, for government budget

financing needs. The 2- and 15-year Treasury

bond auctions were over-subscribed by TZS

143.0 billion and TZS 80.6 billion, in that order,

while that of 10-year bond was under-subscribed

by TZS 40.8 billion. The Bank accepted bids worth

TZS 167.0 billion, TZS 55.9 billion and TZS 109.0

for the 2-, 10- and 15-year bond, respectively.

Weighted average yield (WAY) to maturity for the

2-year Treasury bond decreased to 10.26 percent

from 11.08 percent when it was last auctioned,

while that of 15-year bond declined to 15.19

percent from 15.24 percent. The 10-year bond

WAY to maturity was 14.53 percent compared

with 14.52 percent.

6

8

10

12

14

16

18

20

Jan

-19

Feb-1

9

Mar-

19

Apr-

19

May-1

9

Jun

-19

Jul-

19

Aug

-19

Sep

-19

Oct-

19

No

v-1

9

De

c-1

9

Jan

-20

Overall time deposits rate 12-months deposits rate

Overall lending rate Short-term lending rate (Up to 1 year)

0

2

4

6

8

10

0

130

260

390

520

650

Jan

-19

Feb-1

9

Mar-

19

Apr-

19

May-1

9

Jun

-19

Jul-

19

Aug

-19

Sep

-19

Oct-

19

No

v-1

9

De

c-1

9

Jan

-20

Perc

ent

Billions o

f T

ZS

Offer (LHS) Tender (LHS)

Successful bids (LHS) Overall WAY (RHS)

6

2.3.3 Interbank Cash Market Total transactions in the interbank cash market

increased to TZS 1,604.3 billion in January 2020,

from TZS 1,237.4 billion in the preceding month.

This signal relative increase in demand for shilling

for various economic activities. Overnight

transactions accounted for 22.9 percent of total

transactions compared with 31.7 percent in

December 2019. In line with increase in

transactions, overall and overnight interbank cash

market rates increased to an average of 4.79

percent and 3.90 percent in January 2020 from

4.59 percent and 3.63 percent in the preceding

month, respectively (Chart 2.7).

Chart 2.7: Interbank Cash Market Transactions

Source: Bank of Tanzania Note: LHS denotes left hand scale; and RHS, right hand scale

2.3.4 Repurchase Agreements The Bank of Tanzania continued to auction

reverse repurchase agreement (reverse repo) in

line with prevailing monetary policy stance to

cover banks’ short-term liquidity demand. In

particular, the Bank auctioned reverse repo worth

TZS 342.5 billion in January 2020 compared with

TZS 374.8 billion in the preceding month. At the

same time, reverse repo worth TZS 390.7 billion

matured compared with TZS 325.7 billion in

December 2019. Reverse repo rate increased to

an average of 6.93 percent in January 2020 from

5.89 percent in the preceding month (Chart 2.8).

Chart 2.8: Reverse Repurchase Agreements

Operations

Source: Bank of Tanzania Note: LHS denotes left hand scale; and RHS, right hand

scale

2.3.5 Interbank Foreign Exchange Market

The value of transactions in the interbank foreign

exchange market (IFEM) amounted to USD 60.3

million in January 2020 compared with USD 177.6

million in the preceding month, in line with

seasonal flow of foreign exchange proceeds from

cash crops. The Bank remained in the market for

reserves and liquidity management purposes with

a marginal purchase of USD 2.5 million compared

with USD 117.3 million in December 2019. The

shilling remained stable against the US dollar,

trading at an average of TZS 2,299.97 per US

dollar compared with TZS 2,300.58 per US dollar

in December 2019. On annual basis, the shilling

depreciated by 0.3 percent from an average of

TZS 2,293.93 per US dollar in January 2019

(Chart 2.9).

0

1

2

3

4

5

6

0

285

570

855

1,140

1,425

1,710

Jan

-19

Feb-1

9

Mar-

19

Apr-

19

May-1

9

Jun

-19

Jul-

19

Aug

-19

Sep

-19

Oct-

19

No

v-1

9

De

c-1

9

Jan

-20

Perc

ent

Billions o

f T

ZS

Value of other transactions (LHS)Value of 8 to 14 days transactions (LHS)Value of 2 to 7 days transactions (LHS)Value of overnight transactions (LHS)Overall interbank cash market rate (RHS)Overnight interbank rate (RHS)

0

1

2

3

4

5

6

7

0

135

270

405

540

675

810

945

Jan

-19

Feb-1

9

Mar-

19

Apr-

19

May-1

9

Jun

-19

Jul-

19

Aug

-19

Sep

-19

Oct-

19

No

v-1

9

De

c-1

9

Jan

-20

Perc

ent

Billions o

f T

ZS

Reverse repos sold (LHS) Matured reverse repos (LHS)

Reverse repo rate (RHS)

7

Chart 2.9: Interbank Foreign Exchange Market

Operations

Source: Bank of Tanzania Note: LHS denotes left hand scale; and RHS, right hand Scale

3.0 Government Budgetary Operations

The Government domestic revenue collection

reached TZS 1,773.3 billion in January 2020, of

which TZS 1,714.4 billion was collections by the

central government and TZS 58.9 billion was local

government collections. Tax revenue amounted

to TZS 1,496.0 billion in line with the target for the

month; and was 18.6 percent higher than the

amount collected in corresponding month in 2019.

This performance echoes efforts by the revenue

authority in revenue mobilization. Chart 3.1

shows central government revenue by source

during January 2019 and 2020.

Chart 3.1: Government Revenue in January

Billions of TZS

Source: Ministry of Finance and Planning, and Bank of Tanzania computations Note: p denotes provisional data

On the expenditure side, the Government spent a

total of TZS 1,921.9 billion in January 2020, of

which TZS 1,230.5 billion was recurrent

expenditure and TZS 691.4 billion was spent on

development projects. Out of the funds spent on

development projects, TZS 565.4 billion was from

domestic sources (Chart 3.2).

Chart 3.2: Government Expenditure in January

Billions of TZS

Source: Ministry of Finance and Planning, and Bank of

Tanzania computations Note: p denotes provisional data

4.0 National Debt

4.1 External Debt

External debt stock, comprising of public and

private sector, amounted to USD 22,456.4 million

at the end of January 2020. This was an increase

of USD 62.9 million and USD 1,263.5 million from

the stocks recorded at the end of the previous

month and corresponding month of 2019,

respectively. The monthly development was on

account of new disbursements and increase of

interest arrears that outweighed debt repayment

and the impact of exchange rate movements.

Table 4.1 shows external debt stock by borrower

category.

2,270

2,275

2,280

2,285

2,290

2,295

2,300

2,305

-120

-80

-40

0

40

80

120

160

200

Jan

-19

Feb-1

9

Mar-

19

Apr-

19

May-1

9

Jun

-19

Jul-

19

Aug

-19

Sep

-19

Oct-

19

No

v-1

9

De

c-1

9

Jan

-20

TZ

S/U

SD

Millions o

f U

SD

Bank of Tanzania's net sale (+)/ net purchase (-) (LHS)Banks' sales (LHS)IFEM weighted average exchange rate (RHS)

497.1

371.2

313.4

79.7

529.4554.6

417.3435.2

85.6

265.2

553.0

467.5

352.6

122.9

218.4

Taxes on imports Income tax Taxes on localgoods andservices

Other taxes Non-tax revenue

Actual 2019 Target 2020 Actual 2020P

556.2

475.6

145.0

610.8

157.1

593.5

416.7

220.3

565.4

126.0

Wages andsalaries

Other recurrentexpenditure

Interest costs Developmentexpenditure -

locally financed

Developmentexpenditure -

foreign financed

Actual 2019 Actual 2020P

8

Table 4.1: External Debt Stock by Borrowers Millions of USD

Source: Ministry of Finance and Planning, Bank of Tanzania and Bank of Tanzania computations Note: DOD denotes disbursed outstanding debt; r, revised data; and p, provisional data

In terms of creditors, the structure of external debt

stock remained the same as in the previous month

and corresponding month of 2019. Debt owed to

multilateral institutions continued to account for

the largest share, at 46.0 percent, followed by

debt from commercial sources (Table 4.2).

Table 4.2: External Debt Stock by Creditors

Millions of USD

Source: Ministry of Finance and Planning, Bank of Tanzania and Bank of Tanzania computations Note: DOD denotes disbursed outstanding debt; r, revised data; and p, provisional data

Transport and telecommunication activities

remained the major beneficiary of disbursed

outstanding debt, accounting for 26.9 percent of

the debt, followed by social welfare and

education, energy and mining (Table 4.3).

Table 4.3: Disbursed Outstanding External Debt by

Use of Funds

Millions of USD

Source: Ministry of Finance and Planning, Bank of Tanzania and Bank of Tanzania computations Note: BOP denotes balance of payments; r, revised data; and p, provisional data

External loans disbursed in January 2020

amounted to USD 105.4 million, of which the

Central Government received USD 53.8 million.

Disbursements during the year ending January

2020 amounted to USD 2,632.4 million, of which

USD 2,236.7 million was received by the

Government and the balance by private sector.

Debt service in January 2020 amounted to USD

83.3 million, of which USD 61.2 million was

principal repayment and the balance interest

payment. During the year ending January 2020,

debt service payments amounted to USD 1,995.6

million, of which USD 1,654.0 million was principal

repayment.

4.2 Domestic Debt

The stock of domestic debt was TZS 14,637.8

billion at the end of January 2020, an increase of

TZS 202.6 billion and TZS 356.5 billion from the

stock at the end of the preceding month and

corresponding month of 2019, respectively (Chart

4.1). This development was on account of new

issuance that outweighed debt repayment.

Amount Share (%) Amount Share (%) Amount Share (%)

Central government 16,108.5 76.0 17,571.9 78.5 17,535.6 78.1

DOD 15,215.6 71.8 16,621.8 74.2 16,583.5 73.8

Interest arrears 892.9 4.2 950.1 4.2 952.1 4.2

Private sector 4,914.2 23.2 4,735.8 21.1 4,835.2 21.5

DOD 4,017.1 19.0 3,781.7 16.9 3,833.5 17.1

Interest arrears 897.1 4.2 954.1 4.3 1,001.7 4.5

Public corporations 170.2 0.8 85.7 0.4 85.6 0.4

DOD 137.5 0.6 74.7 0.3 74.6 0.3

Interest arrears 32.7 0.2 11.0 0.0 11.0 0.0

External debt stock 21,192.9 100.0 22,393.4 100.0 22,456.4 100.0

Total DOD 19,370.2 91.4 20,478.2 91.4 20,491.6

Jan-20P

Dec-19r

Jan-19

Borrower

Amount Share (%) Amount Share (%) Amount Share (%)

Multilateral 9,855.8 46.5 10,324.4 46.1 10,340.8 46.0

DOD 9,816.0 46.3 10,287.9 45.9 10,305.8 45.9

Interest arrears 39.8 0.2 36.5 0.2 35.0 0.2

Bilateral 1,923.3 9.1 2,011.3 9.0 2,013.9 9.0

DOD 1,034.3 4.9 1,061.3 4.7 1,061.8 4.7

Interest arrears 889.0 4.2 950.0 4.2 952.1 4.2

Commercial 6,999.8 33.0 7,678.7 34.3 7,653.2 34.1

DOD 6,484.1 30.6 7,136.8 31.9 7,103.8 31.6

Interest arrears 515.7 2.4 541.9 2.4 549.4 2.4

Export credit 2,414.0 11.4 2,379.0 10.6 2,448.5 10.9

DOD 2,035.8 9.6 1,992.2 8.9 2,020.2 9.0

Interest arrears 378.2 1.8 386.8 1.7 428.3 1.9

External debt stock 21,192.9 100.0 22,393.4 100.0 22,456.4 100.0

Jan-20P

Dec-19r

Jan-19

Creditor

Activity Amount Share (%) Amount Share (%) Amount Share (%)

Transport and telecommunication 4,325.0 22.3 5,503.8 26.9 5,505.5 26.9

Social welfare and education 3,049.2 15.7 3,470.0 16.9 3,497.0 17.1

Energy and mining 3,020.0 15.6 3,075.0 15.0 3,050.0 14.9

BoP and budget support 2,764.8 14.3 2,725.1 13.3 2,718.0 13.3

Other 1,865.7 9.6 1,536.3 7.5 1,501.1 7.3

Agriculture 1,252.0 6.5 1,300.0 6.3 1,288.0 6.3

Finance and insurance 1,192.5 6.2 1,012.0 4.9 1,074.0 5.2

Real estate and construction 1,092.0 5.6 1,034.0 5.0 1,034.0 5.0

Industries 657.0 3.4 649.0 3.2 652.0 3.2

Tourism 152.0 0.8 173.0 0.8 172.0 0.8

Total 19,370.2 100.0 20,478.2 100.0 20,491.6 100.0

Dec-19r

Jan-19 Jan-20P

9

Chart 4.1: Government Domestic Debt Stock

Billions of TZS

Source: Bank of Tanzania

Debts of longer-term maturity—treasury bonds

and stocks—sustained dominance in the

composition of the debt stock, altogether

accounting for 80.4 percent (Table 4.4). This is in

line with the Government Medium-term Debt

Management Strategy of mitigating refinancing

risk by lengthening the maturity of debt portfolio.

Table 4.4: Government Domestic Debt by

Borrowing Instruments

Billions of TZS

Source: Ministry of Finance and Planning, Bank of Tanzania and Bank of Tanzania computations Note: * includes NMB bank Plc standard loan and duty drawback

Commercial banks remained the largest creditor,

holding 37.5 percent of the debt stock, followed by

pension funds at 29.6 percent (Table 4.5).

Table 4.5: Government Domestic Debt by Creditor

Billions of TZS

Source: Ministry of Finance and Planning, Bank of Tanzania and Bank of Tanzania computations Note: BOT denotes Bank of Tanzania; and others include other public institutions, private companies and individuals

During January 2020, government securities

worth TZS 499.4 billion were issued for budget

financing, of which TZS 338.8 billion was treasury

bonds and the balance was treasury bills (Chart

4.2). Domestic debt issued during the year ending

January 2020 amounted to TZS 5,371.0 billion, of

which TZS 2,835.2 billion was treasury bills and

the balance was treasury bonds.

Chart 4.2: Government Securities Issued for

Financing Purposes

Billions of TZS

Source: Bank of Tanzania

Domestic debt service, excluding government

overdraft from the central bank, amounted to TZS

415.3 billion in January 2020, of which TZS 296.7

billion was principal repayment that was rolled

over and the balance was interest payment.

Cumulative debt service during the year ending

January 2020 amounted to TZS 4,955.8 billion,

out of which TZS 3,617.3 billion was principal

repayment and the balance was interest payment.

2,949.03,515.0

4,363.0

5,682.6

6,714.3

8,217.3

9,926.9

11,940.1

13,618.814,281.3

14,637.8

Jan-10 Jan-11 Jan-12 Jan-13 Jan-14 Jan-15 Jan-16 Jan-17 Jan-18 Jan-19 Jan-20

Amount Share (%) Amount Share (%) Amount Share (%)

Government securities 12,937.8 90.6 14,416.8 99.9 14,619.4 99.9

Treasury bills 2,677.2 18.7 2,927.9 20.3 2,844.6 19.4

Government stocks 252.7 1.8 252.7 1.8 252.7 1.7

Government bonds 10,007.9 70.1 11,236.1 77.8 11,522.1 78.7

Tax certificates 0.1 0.0 0.1 0.0 0.1 0.0

Non-securitized debt 1,343.5 9.4 18.4 0.1 18.4 0.1

Other liabilities* 18.4 0.1 18.4 0.1 18.4 0.1

Overdraft 1,325.1 9.3 0.0 0.0 0.0 0.0

Domestic debt stock

(without liquidity papers) 14,281.3 100.0 14,435.2 100.0 14,637.8 100.0

*Includes NMB Standard loan and Duty Draw backs

Jan-20Dec-19

Instrument

Jan-19

Amount Share (%) Amount Share (%) Amount Share (%)

Commercial banks 5,047.2 35.3 5,346.2 37.0 5,483.8 37.5

Others 3,737.6 26.2 4,286.6 29.7 4,326.8 29.6

BOT's special funds 1,273.5 8.9 1,892.7 13.1 1,907.3 13.0

Pension funds 2,609.7 18.3 1,314.7 9.1 1,313.2 9.0

Bank of Tanzania 1,324.3 9.3 1,277.8 8.9 1,289.4 8.8

Insurance 289.0 2.0 317.4 2.2 317.4 2.2

Total 14,281.3 100.0 14,435.2 100.0 14,637.8 100.0

Jan-20Dec-19

Holder

Jan-19

279.4311.3

230.2

313.9274.2

202.0 217.9 203.0

304.7

215.1

123.0160.6

179.6 142.6

91.9

144.4

139.1

197.5

428.7

212.7

141.3 293.5

225.9

338.8

Feb-1

9

Mar-

19

Apr-

19

May-1

9

Jun

-19

Jul-

19

Aug

-19

Sep

-19

Oct-

19

No

v-1

9

De

c-1

9

Jan

-20

T-Bills T-Bonds

10

5.0 External Sector Performance

The overall balance of payments improved to a

surplus of USD 699.6 million in year ending

January 2020 compared to a deficit of USD 861.3

million in the corresponding period of 2019. The

improvement in the balance of payments is

partially due to narrowing of current account

deficit from USD 2,314.2 million in the year ending

January 2019 to a deficit of USD 1,137.2 million in

year ending January 2020 owing to higher export

earnings, which more than offset the increase in

import bill (Table 5.1).

Table 5.1 Current Account

Millions of USD

Source: Tanzania Revenue Authority, banks and Bank of Tanzania computations Notes: * Includes adjustments for informal cross border

exports; p denotes provisional data; and o/w, of which

Gross official reserves amounted to USD 5,532.1

million as at end of January 2020, sufficient to

cover 6.4 months of projected imports of goods

and services excluding foreign direct investment

related imports. The import cover was above the

country benchmark of not less than 4.0 months, at

least 4.5 months for EAC, and a minimum of 6

months for SADC. Foreign assets of banks

increased to USD 1,043.0 million at end January

2020 from USD 931.7 million at the end of

January 2019.

5.1 Exports

The value of exports of goods and services

amounted to USD 9,915.6 million in year ending

January 2020 compared with USD 8,262.7 million

recorded in corresponding period of 2019

attributed by increase in both value of good

exports and service receipts.

The value of traditional goods exports rose to

USD 935.4 million in the year ending January

2020 from USD 591.7 million in the corresponding

period of 2019, following increase in exports value

of all traditional exports save for coffee, sisal, tea

and tobacco. Cashew nuts export rose on account

of an increase in volume that outweighs the

impact of decrease in unit prices. Increase in

export value for cotton was mainly due to

improved export volumes, supported by good

weather during the crop season. Conversely,

weak performance of tobacco was due to low

export volume and unit prices. The price

movements of traditional exports were broadly in

line with developments in the world market.

Likewise, the value of non-traditional goods

exports improved to USD 4,292.5 million in year

ending January 2020 compared to USD 3,270.1

million in the corresponding period in 2019. All

categories of non-traditional goods exports

recorded an increase, except diamond, cotton

yarn, and manufactured coffee. During the

period, gold, which accounted for 53.0 percent of

non-traditional exports, increased by 45.6 percent

to USD 2,276.9 million resulting from increase in

volume and price in the world market. The

increase in volume of exported gold is partly

associated with government efforts among others

establishment of mineral trading centres.

Similarly, manufactured goods grew by 19.3

percent to USD 974.9 million as a result of good

performance in exports of iron and steel products,

Item Jan-19 Dec-19 Jan-20P

2018 2019 2020p

Goods account -511.5 -212.8 -270.7 -3,090.9 -4,041.3 -3,066.2 -24.1

Exports* 338.2 521.3 515.7 4,487.4 4,248.0 5,750.7 35.4

Imports 849.7 734.1 786.4 7,578.4 8,289.3 8,816.9 6.4

Services account 195.6 163.2 227.8 1,750.3 1,883.4 2,196.4 16.6

Receipts 397.4 328.1 392.8 3,830.9 4,014.7 4,164.9 3.7

Payments 201.8 164.9 165.0 2,080.6 2,131.2 1,968.5 -7.6

Goods and services -315.9 -49.6 -42.9 -1,340.6 -2,157.9 -869.8 -59.7

Export of goods and services 735.6 849.4 908.5 8,318.3 8,262.7 9,915.6 20.0

Import of goods and services 1,051.6 899.0 951.5 9,659.0 10,420.5 10,785.4 3.5

Primary income account -58.6 -51.5 -53.0 -1,098.7 -625.2 -686.8 9.9

Receipts 20.4 18.8 20.1 128.7 155.9 220.5 41.4

Payments 79.0 70.3 73.1 1,227.4 781.1 907.3 16.2

Secondary income account 55.7 79.2 26.0 440.3 468.8 419.3 -10.6

Inflows 55.7 83.2 31.0 521.7 536.1 473.9 -11.6

o/w: General government 25.2 52.2 0.0 158.1 170.6 103.5 -39.3

Outflows 0.0 4.0 5.0 81.4 67.3 54.6 -18.8

Current account balance -318.8 -21.9 -69.9 -1,999.0 -2,314.2 -1,137.2 -50.9

Source: Bank of Tanzania

Percentage

change

2019 to 2020

Year ending January

11

glass and glassware, manufactured tobacco and

fertilizers. Chart 5.1 summarises the performance

of goods exports for the past three years.

Chart 5.1: Performance of Goods Exports

Millions of USD

Source: Tanzania Revenue Authority and Bank of Tanzania

computations Note: Other* includes other minerals, oil seeds, cereals, cocoa, raw hides and skins, and woods

Service receipts amounted to USD 4,164.9 million

in the year ending January 2020, higher than USD

4,014.7 million in the similar period in 2019, owing

to increase in travel receipts (Chart 5.2). Travel

receipts rose by 4.4 percent to USD 2,557.4

million associated with increased number of

tourist arrivals. Noteworthy, service receipts

accounted for 42.0 percent of total exports.

Chart 5.2: Services Receipts by Category

Millions of USD

Source: Banks and Bank of Tanzania computations Notes: Other services include construction, insurance, financial, telecommunication, computer and information, charges for the use of intellectual property, government, personal and other business services

5.2 Imports

The value of imports increased to USD 10,785.4

million in the year ending January 2020 from USD

10,420.5 million in the corresponding period in

2019, driven by goods imports. All major

categories of goods import recorded increase

(Table 5.2). The growth observed in capital goods

import bill was driven by building and construction

materials, and machinery, consistent with the on-

going mega infrastructure projects. As for

intermediate goods, the increase was explained

by higher oil import bill, which accounted for 22.5

percent of goods import, following increase in

volume.

Table 5.2: Goods Imports

Millions of USD

Source: Tanzania Revenue Authority and Bank of Tanzania

computation Notes: 1 includes pharmaceutical products, paper products, plastic items, optical/photographic materials, and textile apparels; r denote revised data; p, provisional data; and f.o.b, free on board

Services payment fell by 7.6 percent to USD

1,968.5 million, largely due to low travel

payments. On the other hand, transport payment

increased by 17.6 percent in line with the increase

in goods import (Chart 5.3).

1,4

89.4

1,0

49.9

693.3

383.6

121.6

148.0

193.7

1,5

64.2

591.7 817.2

408.2

173.9

153.1

154.0

2,2

76.9

935.4

974.9

543.4

180.4

172.4

165.4

Gold

Tra

ditio

na

lE

xpo

rts

Man

ufa

ctu

red

go

ods

Oth

er*

Re

-expo

rts

Ho

rtcu

ltura

lin

clu

din

ged

ible

veg

eta

ble

s

Fis

h a

nd fis

hpro

ducts

Year ending January

2018 2019 2020

2,223.4

1,122.0

458.2

2,449.4

1,222.1

343.2

2,557.4

1,294.4

313.1

Travel (Tourism) Transport Other services

Year ending January

2018 2019 2020

Category Dec-19r

Jan-20P

2019 2020p

Capital goods 268.1 305.3 3,523.6 3,666.5 4.1 41.6

Transport equipment 75.9 77.0 1,278.3 969.5 -24.2 11.0

Building and constructions 87.3 101.6 859.5 1,037.9 20.8 11.8

Machinery 104.9 126.7 1,385.8 1,659.1 19.7 18.8

Intermediate goods 221.1 265.4 2,673.8 2,888.3 8.0 32.8

Oil imports 163.3 170.4 1,739.8 1,985.2 14.1 22.5

Fertilizers 4.2 24.4 182.5 143.2 -21.5 1.6

Industrial raw materials 53.5 70.6 751.5 759.9 1.1 8.6

Consumer goods 191.9 215.7 2,092.0 2,262.1 8.1 25.7

Food and food stuffs 16.6 17.2 249.0 217.1 -12.8 2.5

All other consumer goods1

175.3 198.5 1,843.0 2,045.1 11.0 23.2

Grand total (f.o.b) 681.1 786.4 8,289.3 8,816.9 6.4 100.0

Year ending JanuaryPercentage

change

2019 to 2020

Percentage

contribution,

2020

12

Chart 5.3: Services Payments

Millions of USD

Source: Banks and Bank of Tanzania computations Notes: Other services include construction, insurance, financial, telecommunication, computer and information, charges for the use of intellectual property government, personal and other business services

Primary income account, which comprises

income from capital related transactions and

compensation of employees widened to a deficit

to USD 686.8 million from USD 625.2 million.

Secondary income account—that captures

unilateral current transfers—recorded a surplus of

USD 419.3 million compared with a surplus of

USD 468.8 million in the year ending January

2019, owing to decline in official inflows.

5.3 World Commodity Prices

During January 2020, prices of selected

commodities in the world market were lower than

in the preceding month, save for gold, cloves,

cotton, tea (Mombasa) and sisal (Table 5.3). Oil

prices, particularly white products, remained on a

downward movement trading at an average of

USD 570.52 per tonne in January 2020 compared

with USD 593.12 per tonne in the preceding

month. Weak demand for oil in China in the wake

of the Corona virus outbreak attributed to the

decline in oil prices in the world market. It is worth

noting that China is the world largest oil importer.

On annual basis, prices of all selected

commodities declined except of Arabica coffee

and gold. The decline in prices of petroleum

products was attributed to worries about slowing

of global economic growth due to geopolitical

tensions including USA and China trade tension,

and Brexit.

Table 5.3: World Commodity Prices

Source: https://www.worldbank.org/en/research/commodity- markets; Bloomberg; Tanzania Sisal Board and Bank of Tanzania computations Note: * denotes crude oil Brent; ** crude oil Dubai free on board; UG, under grade; and ozt, troy ounce

6.0 Economic Developments in Zanzibar

6.1 Inflation

On the year ending January 2020, headline

inflation was 4.9 percent compared with 3.3

percent in December 2019 and 3.0 percent in the

similar period in 2019 (Table 6.1 and Chart 6.1).

The increase was mainly due to increase in prices

of some food items including maize flour and

green cooking bananas, which grew by 46.2

percent and 14.8 percent, respectively. Annual

food inflation was 7.7 percent in January 2020,

higher than 3.7 percent in January 2019. On

monthly basis, headline inflation was 1.2 percent

in January 2020 compared to a deflation of 0.4

percent in the similar month in 2019, while that for

food increased to 2.2 percent from a deflation of

1.1 percent.

820.8 810.8

459.8

738.1

839.1

554.1595.4

986.4

386.6

Travel Transport Other services

Year ending January

2018 2019 2020

2019 2020

Robusta coffee USD per kg 1.63 1.56 -4.7 1.85 1.61 -13.0

Arabica coffee USD per kg 3.45 3.13 -9.3 2.91 2.90 0.0

Tea (average price) USD per kg 2.58 2.51 -2.6 2.78 2.56 -7.8

Tea (Mombasa auction) USD per kg 2.21 2.29 3.5 2.47 2.22 -10.1

Cotton, "A index" USD per kg 1.67 1.74 4.3 2.00 1.71 -14.3

Sisal (UG) USD per kg 1.70 1.70 0.0 1.72 1.70 -1.2

Cloves (Madagascan

CIF Singapore) USD per tonne 5.48 6.47 18.1 7.92 6.28 -20.7

Crude oil* USD per barrel 65.85 63.60 -3.4 67.19 64.49 -4.0

Crude oil** USD per barrel 64.41 63.76 -1.0 68.43 63.55 -7.1

White products USD per tonne 593.12 570.52 -3.8 667.93 597.47 -10.5

Gold USD per ozt 1,479.13 1,560.67 5.5 1,265.93 1,414.91 11.8

Percentage

change

Percentage

changeCommodity

Unit of

measure Dec-19 Jan-20

Year ending January

(Twelve months average)

13

Table 6.1: Headline Inflation and its Main

Components

Base: Jan 2017=100

Source: Office of the Chief Government Statistician, Zanzibar

Chart 6.1: Twelve-Month Inflation

Percent

Source: Office of the Chief Government Statistician, Zanzibar

6.2 Government Budgetary Operations

Government resources, which include domestic

revenue and foreign grants, amounted to TZS

76.6 billion in January 2020, of which TZS 75.2

billion was domestic revenue and TZS 1.4 billion

was foreign grants. Out of domestic revenue, TZS

63.2 billion was tax collections and the balance

was non-tax revenue (Chart 6.2). Cumulatively,

domestic revenue amounted to TZS 507.2 billion

in July 2019 - January 2020 period.

Chart 6.2: Government Resources in January

Billions of TZS

Source: Ministry of Finance and Planning, Zanzibar Note: Other taxes include hotel and restaurant levies, tour

operator levy, revenue stamps, airport and seaport service charges, road development fund and petroleum levy

Over the same period, total government

expenditure amounted to TZS 70.1 billion, of

which TZS 52.6 billion was recurrent expenditure

and TZS 17.4 billion was development

expenditure. Out of the amount spent on

development projects, 56.4 percent was from

domestic sources and the balance was from

foreign resources (Chart 6.3). In aggregate,

government expenditure in July 2019 to January

2020 period amounted to TZS 654.0 billion.

Chart 6.3: Government Expenditure in January

Billions of TZS

Source: Ministry of Finance and Planning, Zanzibar Note: Other expenditure include transfers, domestic debt

interest payment, consolidated fund service and other charges

Main groups Weight Jan-19 Dec-19 Jan-20 Jan-19 Dec-19 Jan-20

Food and non-alcoholic beverages 43.6 -1.1 1.8 2.2 3.6 4.3 7.7

Alcoholic beverages, tobacco and

narcotics 0.2 0.2 0.0 0.0 6.9 22.4 22.2

Clothing and footwear 6.9 -0.1 -0.2 0.0 1.8 0.1 0.2

Housing, water, electricity, gas and

other fuels 18.4 -1.4 0.2 0.0 1.5 0.3 1.7

Furnishing, household equipment 5.5 1.3 0.2 -0.1 2.9 4.0 2.6

Health 2.1 2.5 0.0 3.9 4.0 7.6 9.1

Transport 9.6 -0.7 -0.4 0.6 4.1 -0.3 0.9

Communication 4.2 0.0 0.0 0.0 -1.1 15.8 15.8

Recreation and culture 1.3 0.0 0.0 0.0 4.0 2.3 2.3

Education 1.9 3.1 0.0 3.2 4.2 3.1 3.2

Restaurants and hotels 3.9 5.4 0.0 0.4 4.1 5.4 0.4

Miscellaneous goods and services 2.3 1.3 0.0 0.8 3.5 4.2 3.6

All items (Headline inflation) 100.0 -0.4 0.8 1.2 3.0 3.3 4.9

Other selected groups:

Food 42.7 -1.1 1.8 2.2 3.7 4.3 7.7

Non-food 57.3 0.1 0.0 0.4 2.4 2.5 2.8

Annual changeMonthly change

-2

0

2

4

6

8

10

Jan

-17

May-1

7

Sep

-17

Jan

-18

May-1

8

Sep

-18

Jan

-19

May-1

9

Sep

-19

Jan

-20

Headline Food Non-food

19.3

15.9

10.3 10.6

6.6

0.8

24.4

21.2

15.1 14.5 14.4

0.8

22.4

17.6

12.7

10.5

12.0

1.4

Other taxes VAT andexcise duties

(local)

Tax onimports

Income tax Non-taxrevenue

Grants

Actual 2019 Target 2020 Actual 2020

27.5

42.4

15.6

69.2

30.2

22.5

9.8 7.6

Wages and salaries Other recurrentexpenditure

Developmentexpenditure - locally

financed

Developmentexpenditure - foreign

financed

2019 2020

14

6.3 External Sector Performance

6.3.1 Current Account

In the year ending January 2020, current account

balance registered a deficit of USD 57.4 million

compared with the deficit of USD 54.2 million in

the corresponding period in 2019 (Table 6.2). The

outturn was largely owing to higher import bill

relative to exports. Goods account balance was a

deficit of USD 233.6 million compared with a

deficit of USD 195.6 million in the year ending

January 2019. At the same time, services account

recorded a surplus of USD 97.3 million, slightly

lower than a surplus of USD 104.7 million a year

earlier.

Table 6.2: Current Account

Millions of USD

Source: Zanzibar Revenue Board, Zanzibar State Trade Corporation, Tanzania Revenue Authority, Bank of Tanzania, banks, and Bank of Tanzania computations Note: p denotes provisional data; fob, free on board; and “---”, change that exceeds 100 percent

6.3.2 Exports

During the year ending January 2020, the value

of goods and services exports grew by 17.0

percent to USD 229.5 million, owing to increase

in the value of goods export and proceeds from

services related activities (Table 6.2 and Table

6.3). The value of goods export was USD 24.1

million, higher than the amount recorded in the

year ending January 2019 by 17.5 percent. This

performance was largely on account of cloves

exports; whose value grew by 70.1 percent to

USD 14.4 million following increase in volume.

Table 6.3 presents performance of goods export

by category.

Table 6.3: Performance of Export of Goods

Source: Tanzania Revenue Authority, and Bank of Tanzania computations Note: Other exports mainly include souvenirs and spices; p denotes provisional data; and “---“, change that exceeds 100 percent

6.3.3 Imports

Goods (fob) and services valued at USD 369.8

million were imported in the year ending January

2020, an increase of 28.8 percent compared with

the corresponding period in 2019. This was on

account of both goods and services (Table 6.2).

Goods import bill grew by 19.2 percent, year-on-

year, with all major categories recording

increases. Notable increase was observed in

consumer goods, mostly rice, and wheat. Goods

imports continued to be dominated by

intermediate and consumer goods, which

accounted for 41.9 percent and 35.3 percent of

the goods import bill, respectively (Table 6.4).

Jan-19 Dec-19 Jan-20P

2019 2020p

Goods account -13.0 -24.3 -16.3 -195.6 -233.6 19.4

Exports 0.6 3.2 10.1 20.6 24.1 17.5

Imports (fob) 13.6 27.5 26.5 216.2 257.7 19.2

Services account 9.9 5.4 6.7 104.7 93.3 -10.9

Receipts 16.0 21.9 15.1 175.6 205.3 16.9

Payments 6.1 16.5 8.4 70.9 112.0 58.0

Goods and services -3.2 -18.9 -9.7 -90.9 -140.3 54.3

Exports of goods and services 16.6 25.1 25.2 196.2 229.5 17.0

Imports of goods and services 19.7 44.0 34.8 287.1 369.8 28.8

Income account 0.9 1.3 2.5 9.5 14.8 55.6

Receipts 1.2 2.1 3.3 15.1 21.8 44.5

Payments 0.3 0.8 0.8 5.6 7.0 25.6

Current transfers 0.7 9.3 12.7 27.2 64.1 ---

Inflows 0.9 10.1 13.3 29.1 76.6 ---

Outflows 0.2 0.8 0.6 1.9 12.4 ---

Current account balance -1.5 -8.2 5.5 -54.2 -61.4 13.2

Source: Tanzania Revenue Authority and BOT computations

Year ending JanuaryPercentage

change

Jan-19 Dec-19 Jan-20P

2019 2020p

Traditional exports:

Clove

Value '000' USD 0.0 2,969.1 9,123.8 8,468.5 14,404.8 70.1

Volume '000' Tonnes 0.0 0.7 1.9 1.1 2.9 ---

Unit price USD/Tonne 0.0 4,532.9 4,717.6 8,065.2 4,918.0 -39.0

Non-traditional exports:

Seaweeds

Value '000' USD 368.6 211.5 525.1 4,228.3 4,479.2 5.9

Volume '000' Tonnes 0.8 0.3 0.8 10.2 7.4 -27.8

Unit price USD/Tonne 434.1 693.5 660.5 414.8 608.2 46.6

Manufactured goods '000' USD 164.8 14.4 136.9 6,609.2 3,467.1 -47.5

Fish and fish products '000' USD 7.1 2.2 88.8 461.3 1,077.2 ---

Others exports '000' USD 12.7 25.8 256.7 784.6 720.0 -8.2

Sub total '000' USD 553.2 253.9 1,007.5 12,083.5 9,743.6 -19.4

Grand total '000' USD 553.2 3,223.0 10,131.3 20,552.0 24,148.4 17.5

Source: Tanzania Revenue Authority and BOT computations

Year ending JanuaryPercentage

change Units

15

Table 6.4: Imports by Major Categories

Millions of USD

Source: Tanzania Revenue Authority, and Bank of Tanzania

computations Note: p denotes provisional data; c.i.f, cost, insurance, and freight; and f.o.b, free on board

Jan-19 Dec-19 Jan-20P

2019 2020p

Capital goods 3.6 12.6 6.7 60.4 64.6 6.9

Transport equipment 1.7 1.1 0.8 22.1 18.0 -18.5

Building and construction 0.5 1.8 3.9 11.7 16.8 43.8

Machinery 1.4 9.6 2.0 26.6 29.7 11.8

Intermediate goods 8.2 11.2 8.6 104.7 118.7 13.3

Oil imports 6.4 8.7 5.7 72.1 87.8 21.9

Industrial raw materials 1.9 2.5 2.9 32.6 30.8 -5.5

Consumer goods 3.1 6.4 13.8 72.5 100.0 38.0

Food and food stuffs 0.6 2.3 8.3 28.3 51.6 82.3

All other consumer goods 2.5 4.1 5.5 44.2 48.4 9.6

Grand total (c.i.f) 14.9 30.2 29.1 237.6 283.2 19.2

Grand total (f.o.b) 13.6 27.5 26.5 216.2 257.7 19.2

Source: Tanzania Revenue Authority

Percentage

change

Year ending January

16

Statistical Tables

Table A1: Selected Economic Indicators

Unit 2015 2016 2017 2018r

2019p

National accounts and prices

1.1 Change in GDP at current prices Percent 14.2 14.9 9.6 8.9 n.a

1.2 Change in GDP at constant 2015 prices Percent 6.2 6.9 6.8 7.0 n.a

1.3 GDP per capita-current prices (TZS) '000' TZS 1,969.0 2,191.2 2,327.4 2,461.9 n.a

1.4 GDP per capita-current prices (USD) USD 991.7 1,006.5 1,044.2 1,087.5 n.a

1.5 Change in consumer price index (Inflation) Percent 5.6 5.2 5.3 3.5 3.4

1.6 Saving to GNDI ratio Percent 24.4 29.4 29.7 30.3 n.a

Money, credit and interest rates

2.1 Change in extended broad money supply (M3) Percent 18.8 3.4 8.0 4.5 9.6

2.2 Change in broad money supply (M2) Percent 13.4 5.3 10.4 3.8 11.8

2.3 Change in narrow money supply (M1) Percent 15.6 5.3 10.6 5.1 13.7

2.4 Change in reserve money (M0) Percent 15.6 0.3 1.5 0.6 6.8

2.5 Total credit to GDP ratio1

Percent 21.6 19.3 17.0 17.2 16.7

2.6 Non-government sector credit to GDP ratio1

Percent 16.4 15.3 14.2 13.7 14.0

2.7 Ratio of credit to non-government sector to total credit Percent 76.0 79.5 83.8 79.8 83.5

2.8 12-Months deposit rate2

Percent 10.8 11.5 11.7 8.8 8.8

2.9 Overall treasury bill rate2

Percent 12.9 16.2 11.1 6.4 7.7

2.10 Long-term lending rate (3-5 years)2

Percent 15.3 15.6 17.9 17.4 16.6

Balance of payments

3.1 Exports of goods (f.o.b) Mill. USD 5,316.8 4,949.7 4,523.9 4,379.6 5,573.2

3.2 Imports of goods (f.o.b) Mill. USD -9,843.1 -8,463.6 -7,551.7 -8,066.6 -9,017.6

3.3 Trade balance Mill. USD -4,526.3 -3,513.9 -3,027.8 -3,687.0 -3,444.5

3.4 Current account balance Mill. USD -3,987.4 -2,664.7 -1,813.9 -2,204.6 -1,623.0

3.5 Overall balance Mill. USD 199.1 -305.5 -1,669.6 784.0 560.3

3.6 Gross official reserves Mill. USD 4,093.7 4,325.6 5,900.3 5,044.6 5,567.6

3.7 Reserves months of imports (of goods and services)

(excluding FDI related imports) Months 4.9 5.9 7.5 5.7 6.4

3.8 Exchange rate:

Annual average TZS/USD 1,985.4 2,177.1 2,228.9 2,263.8 2,288.2

End of period TZS/USD 2,148.5 2,172.6 2,230.1 2,281.2 2,287.9

2014/15 2015/16 2016/17 2017/18 2018/19

Public finance

4.1 Current revenue to GDP ratio1

Percent 12.4 13.7 14.7 14.6 13.8

4.2 Grants to GDP ratio1

Percent 1.2 0.5 1.0 0.8 0.3

4.3 Current expenditure to GDP ratio1

Percent 12.3 13.2 10.2 10.4 10.3

4.4 Development expenditure to GDP ratio1

Percent 4.2 4.3 6.4 6.2 6.4

4.5 Overall Budget balance to GDP ratio1,3

Percent -3.2 -3.4 -1.4 -1.9 -3.1

Total external debt stock Mill. USD 15,884.0 17,222.8 18,651.1 20,503.0 21,920.9

5.1 Disbursed debt Mill. USD 14,548.3 15,948.1 17,251.2 18,765.1 20,029.3

5.2 Interest Arrears Mill. USD 1,335.7 1,274.7 1,399.9 1,737.9 1,891.7

Source: Ministry of Finance and Planning; Bank of Tanzania; and Tanzania Revenue Authority

Note: 1 Calculated on the basis of GDP at current market prices;

2 annual average;

3 includes grants, expenditure float, adjustment to cash and other items (net); GDP

denotes gross domestic product; GNDI, gross national disposable income; r, revised data; p, provisional data and n.a, not available

17

Table A2: Central Government Operations (Cheques Issued) – Tanzania Mainland

Millions of TZS

Budget

2019/20 Estimate ActualP

Estimate ActualP

Total revenue (including LGAs) 23,045,337.5 12,756,793.4 11,938,948.7 1,822,728.5 1,773,258.0

Central government revenue 22,279,854.1 12,299,404.6 11,526,362.7 1,758,065.3 1,714,397.5

Tax revenue 18,955,186.2 10,873,336.7 10,527,953.3 1,492,842.0 1,495,994.6

Taxes on imports 6,723,512.1 3,892,728.7 3,769,860.2 554,630.7 552,989.3

Sales/VAT and excise on local goods 4,863,780.9 2,891,884.8 2,466,389.8 435,241.3 352,581.5

Income taxes 6,321,096.9 3,475,546.5 3,540,169.5 417,323.3 467,479.4

Other taxes 1,046,796.3 613,176.7 751,533.8 85,646.7 122,944.5

Non- tax revenue 3,324,667.9 1,426,067.9 998,409.4 265,223.3 218,402.9

LGA own sources 765,483.4 457,388.8 412,586.0 64,663.2 58,860.5

Total expenditure1

27,669,093.8 14,508,942.8 13,144,065.9 2,042,497.5 1,921,856.9

Recurrent expenditure 15,420,491.5 8,742,137.2 7,661,337.1 1,241,723.8 1,230,495.2

Wages and salaries 7,558,974.4 4,327,228.2 4,041,648.5 635,730.5 593,519.0

Interest payments 2,426,262.0 1,253,950.2 1,429,055.2 152,967.8 220,265.5

Domestic 1,438,950.0 809,911.0 937,021.3 120,393.0 114,584.6

Foreign 987,312.0 444,039.2 492,033.9 32,574.8 105,680.9

Other goods, services and transfers 5,435,255.2 3,160,958.8 2,190,633.5 453,025.5 416,710.7

Development expenditure and net lending 12,248,602.3 5,766,805.6 5,482,728.8 800,773.7 691,361.7

Local 9,737,738.8 4,256,612.2 4,038,721.4 623,209.9 565,401.7

Foreign 2,510,863.5 1,510,193.3 1,444,007.4 177,563.8 125,960.0

Balance before grants -4,623,756.4 -1,752,149.4 -1,205,117.2 -219,769.0 -148,598.9

Grants 1,208,523.1 788,251.7 635,099.1 30,228.7 182,442.7

Program 146,822.1 0.0 132,263.7 0.0 132,263.7

Project 896,987.5 687,768.9 303,595.0 30,228.7 43,711.0

Basket funds 164,713.5 100,482.8 199,240.4 0.0 6,468.0

Balance (cheques issued) after grants -3,415,233.3 -963,897.7 -570,018.1 -189,540.3 33,843.8

Expenditure float 0.0 0.0 -14,454.5 0.0 0.0

Adjustments to cash and other items (net) 0.7 0.0 556,763.3 0.0 4,405.8

Overall balance -3,415,232.5 -963,897.7 -27,709.3 -189,540.3 38,249.6

Financing 3,415,232.5 963,897.7 27,709.3 189,540.3 -38,249.6

Foreign financing (net) 1,915,458.4 1,537,158.8 1,682,329.1 133,664.2 -71,087.2

Loans 3,891,556.4 2,701,052.0 2,763,265.1 147,335.0 75,781.0

Program loans 125,990.5 125,990.4 0.0 0.0 0.0

Development project loans 3,730,819.9 2,575,061.6 2,723,858.1 147,335.0 75,781.0

o/w: Non-concessional borrowing 2,316,403.6 1,853,120.0 1,822,093.1 0.0 0.0

Basket support 34,746.0 0.0 39,407.0 0.0 0.0

Amortization -1,976,098.0 -1,163,893.2 -1,080,936.0 -13,670.9 -146,868.2

Domestic (net)2

1,499,774.2 -573,261.1 -1,654,619.8 55,876.1 32,837.6

Bank and non-bank financing 1,499,774.2 -573,261.1 -1,654,619.8 55,876.1 32,837.6

Bank borrowing 1,043,537.5 -401,282.8 -2,330,498.1 39,113.3 -11,579.1

Non-bank (net of amortization) 456,236.7 -171,978.3 675,878.3 16,762.8 44,416.7

Borrowing/roll-over 3,460,218.0 2,146,322.0 3,016,517.2 302,286.0 402,285.9

Domestic and contingent debt amortization -3,460,218.0 -2,146,322.0 -3,016,517.2 -302,286.0 -402,285.9

Source: Ministry of Finance and Planning

Note: 1 Exclude amortization and expenditure float, includes road fund and retention expenditure

2 Positive value means financing and a negative value means repayment/ build-up of deposits

LGA stands for Local Government Authority; VAT, value added tax; o/w, of which; and p, provisional data

July 2019 - January 2020 January 2020

18

Table A3: Depository Corporations Survey

Billions of TZS

Items Jan-19 Feb-19 Mar-19 Apr-19 May-19 Jun-19 Jul-19 Aug-19 Sep-19 Oct-19 Nov-19 Dec-19 Jan-20P

Net foreign assets 10,371.9 10,636.7 10,216.6 9,598.2 9,187.5 9,814.9 10,392.5 11,461.7 12,082.3 11,889.9 12,135.4 12,034.5 11,811.0

Bank of Tanzania 10,290.4 10,543.2 9,890.4 9,273.6 9,090.6 9,420.9 10,216.7 11,445.6 11,680.9 11,890.2 12,207.7 12,063.1 11,973.5

Other depository corporations 81.6 93.4 326.2 324.6 96.9 394.0 175.8 16.1 401.4 -0.3 -72.4 -28.5 -162.6

Net domestic assets 15,391.2 15,232.0 15,486.3 16,030.9 16,758.0 17,425.9 16,537.5 15,701.4 15,558.4 16,161.0 16,029.0 16,278.6 16,303.2

Domestic claims 22,229.4 22,251.9 22,289.9 23,355.8 24,061.7 25,073.9 23,757.4 22,765.3 22,816.2 23,302.4 23,239.3 23,589.3 23,692.0

Claims on central government (net) 4,064.4 3,825.1 3,853.6 4,714.3 5,250.3 6,212.8 4,871.9 3,745.7 3,610.0 3,977.0 3,854.8 3,893.9 3,882.3

Claims on central government 8,217.1 7,860.2 7,876.4 8,579.8 9,212.0 9,330.0 9,151.0 8,721.7 7,998.8 8,279.3 8,739.3 8,408.0 8,677.7

Liabilities to central government 4,152.7 4,035.1 4,022.9 3,865.5 3,961.7 3,117.1 4,279.1 4,976.0 4,388.9 4,302.2 4,884.4 4,514.1 4,795.4

Claims on non-government sector 18,165.0 18,426.8 18,436.4 18,641.5 18,811.4 18,861.1 18,885.5 19,019.7 19,206.2 19,325.4 19,384.5 19,695.4 19,809.7

Other items (net) -6,838.2 -7,019.9 -6,803.7 -7,325.0 -7,303.7 -7,647.9 -7,220.0 -7,063.9 -7,257.8 -7,141.3 -7,210.3 -7,310.7 -7,388.8

Broad money liabilities 25,763.1 25,868.7 25,702.8 25,629.1 25,945.6 27,240.8 26,930.0 27,163.2 27,640.7 28,050.9 28,164.3 28,313.1 28,114.2

Currency outside depository corporations 3,709.2 3,733.9 3,782.8 3,772.1 3,925.7 4,121.0 4,115.1 4,193.3 4,130.7 4,147.3 4,211.9 4,221.8 4,030.4

Transferable deposits 11,960.4 11,834.9 11,775.6 11,867.2 11,915.9 12,953.5 12,673.6 12,531.0 13,039.0 13,450.4 13,281.6 13,322.3 13,505.5

Non-transferable (other) deposits 10,093.5 10,299.9 10,144.4 9,989.8 10,103.9 10,166.3 10,141.4 10,438.8 10,471.0 10,453.2 10,670.8 10,769.0 10,578.3

Memorandum Items:

Monetary aggregates

Reserve money (M0) 6,707.2 6,840.7 6,688.4 6,764.7 6,973.9 7,963.8 7,262.4 7,125.6 7,218.8 7,594.2 7,411.2 7,466.4 7,200.8

Extended broad money (M3) 25,763.1 25,868.7 25,702.8 25,629.1 25,945.6 27,240.8 26,930.0 27,163.2 27,640.7 28,050.9 28,164.3 28,313.1 28,114.2

Deposits in foreign Currency (FCD) 6,796.7 6,591.5 6,717.3 6,293.5 6,318.4 6,238.7 6,531.4 6,630.0 7,211.1 7,279.6 7,096.6 7,032.9 6,982.8

FCD in millions of USD 2,976.4 2,879.7 2,934.0 2,748.8 2,760.8 2,724.9 2,853.2 2,895.9 3,149.7 3,180.5 3,101.3 3,073.9 3,051.2

Broad money (M2) 18,966.4 19,277.1 18,985.5 19,335.6 19,627.2 21,002.1 20,398.6 20,533.2 20,429.6 20,771.3 21,067.7 21,280.3 21,131.3

Other deposits in national currency (i.e.

savings and time deposits) 7,362.3 7,563.7 7,390.6 7,387.3 7,430.1 7,480.4 7,380.2 7,716.1 7,752.3 7,665.9 7,875.2 7,955.1 7,840.0

Narrow money (M1) 11,604.1 11,713.4 11,594.9 11,948.3 12,197.1 13,521.7 13,018.4 12,817.1 12,677.4 13,105.5 13,192.5 13,325.1 13,291.4

Currency in circulation 3,709.2 3,733.9 3,782.8 3,772.1 3,925.7 4,121.0 4,115.1 4,193.3 4,130.7 4,147.3 4,211.9 4,221.8 4,030.4

Transferable deposits in national currency 7,894.9 7,979.6 7,812.2 8,176.2 8,271.5 9,400.7 8,903.3 8,623.7 8,546.6 8,958.2 8,980.6 9,103.3 9,261.0

Source: Bank of Tanzania and banks

Note: p denotes provisional data

19

Table A4: Interest Rates Structure

Percent

2020

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Novr

Dec JanP

A: Domestic currency

1. Interbank cash market rates

Overnight 3.55 4.52 5.27 5.20 5.32 5.47 5.04 4.63 5.15 4.28 4.68 3.63 3.90

2 to 7 days 3.95 5.25 5.82 5.81 5.79 5.77 5.38 4.91 5.41 5.21 5.05 4.91 4.91

8 to 14 days 4.80 5.67 6.34 6.42 6.24 6.21 5.56 5.38 5.58 5.43 5.23 5.02 5.41

15 to 30 days 4.49 5.00 6.95 7.25 7.24 6.89 5.52 5.82 5.76 5.99 5.47 5.54 5.21

31 to 60 days 5.00 5.00 6.67 7.00 7.30 7.75 6.12 6.33 6.09 5.29 6.15 6.15 7.18

61 to 90 days 2.50 2.50 8.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00 5.00 6.50 6.50

Overall interbank cash market rate 3.74 4.72 5.59 5.54 5.60 5.69 5.42 4.91 5.37 5.22 5.18 4.59 4.79

2. Lombard rate 6.75 6.79 7.91 7.79 7.97 8.20 7.57 6.95 7.73 6.75 7.02 6.75 6.75

3. REPO rate 4.50 4.50 4.50 4.50 4.50 4.50 4.50 4.50 4.50 4.50 4.50 4.50 4.50

4. Reverse repo rate 4.06 4.18 5.66 5.12 5.09 5.25 5.79 5.41 5.52 5.59 5.88 5.89 6.93

5. Treasury bills rates

35 days 3.00 3.12 3.27 3.42 3.50 3.64 3.80 3.69 3.55 3.56 3.56 3.58 2.80

91 days 3.50 3.67 3.85 4.09 4.14 4.33 4.39 4.36 4.53 4.43 4.30 4.40 3.50

182 days 5.27 5.28 5.17 5.26 5.14 5.16 5.24 5.18 5.19 4.82 4.57 4.53 4.23

364 days 9.33 9.25 9.15 9.06 9.06 9.04 8.31 7.70 7.09 6.46 6.10 5.91 5.91

Overall treasury bills rate 8.54 8.73 8.67 8.20 8.58 8.69 8.18 7.65 7.05 6.40 5.98 5.81 5.64

6. Treasury bonds rates

2-years 11.39 11.39 11.39 11.97 11.97 11.97 11.97 11.08 11.08 11.08 11.08 11.08 10.26

5-years 12.00 12.71 12.71 12.71 12.96 12.96 12.96 12.96 12.96 11.95 11.95 11.95 11.95

7-years 12.56 13.23 13.23 13.23 13.23 13.23 13.23 13.23 13.23 12.89 12.89 12.89 12.89

10-years 14.94 14.94 15.11 15.11 15.11 15.70 15.12 15.16 15.16 15.16 14.52 14.52 14.53

15-years 15.46 15.46 15.62 15.62 15.62 15.74 15.67 15.67 15.37 15.37 15.37 15.24 15.24

20-years 17.73 17.45 17.45 17.45 17.39 17.39 17.42 17.42 17.34 17.34 17.09 16.76 16.76

7. Discount rate 7.00 7.00 7.00 7.00 7.00 7.00 7.00 7.00 7.00 7.00 7.00 7.00 7.00

8. Savings deposit rate 2.60 2.54 2.59 2.46 2.45 2.44 2.47 2.37 2.44 2.33 2.34 2.31 2.28

9. Overall time deposits rate 7.34 7.25 7.64 7.04 7.35 7.44 7.34 7.03 7.45 7.30 6.97 6.79 6.89

1 month 9.24 9.66 9.16 8.12 8.64 8.58 8.28 8.19 7.46 8.24 8.59 7.97 7.27

2 months 7.32 7.23 8.28 7.48 7.17 7.46 7.72 5.04 8.28 8.43 7.52 5.05 6.91

3 months 6.61 6.81 8.01 6.99 7.27 7.63 6.80 7.68 8.14 6.62 4.75 7.93 5.78

6 months 7.43 7.51 8.03 7.70 7.99 8.31 8.46 8.04 8.35 7.91 7.28 6.73 7.54

12 months 8.66 8.52 9.01 7.93 8.75 9.06 9.07 8.87 8.67 8.84 9.38 8.90 9.27

24 months 10.10 9.79 9.53 9.73 9.86 9.78 9.76 9.84 9.84 9.73 9.96 9.85 10.23

10. Negotiated deposit rate 8.85 9.13 8.84 9.15 8.65 8.84 8.69 8.98 8.83 8.92 9.06 9.08 9.51

11. Overall lending rate 17.23 16.65 17.27 17.25 17.21 16.87 16.87 16.77 17.00 16.77 16.94 16.76 16.81

Short-term (up to 1year) 17.01 16.39 17.59 16.94 17.07 16.43 16.25 16.34 16.42 16.71 16.90 16.28 15.51

Medium-term (1-2 years) 18.18 17.89 17.81 18.32 18.24 18.17 18.34 18.23 18.38 18.00 18.38 18.67 18.65

Medium-term (2-3 years) 17.78 17.07 19.03 17.97 17.82 17.56 17.41 17.49 17.62 17.48 17.55 17.71 17.92

Long-term (3-5 years) 17.08 16.44 16.85 16.73 17.16 16.61 16.69 16.60 16.62 16.31 16.58 15.85 16.51

Term Loans (over 5 years) 16.10 15.47 15.08 16.27 15.77 15.59 15.65 15.20 15.94 15.37 15.29 15.29 15.45

12. Negotiated lending rate 14.93 14.84 14.62 14.61 15.27 14.41 14.38 14.31 14.09 14.44 13.62 14.00 13.19

B: Foreign currency

1. Deposits rates

Savings deposits rate 2.02 2.09 1.72 1.76 1.75 2.11 2.62 2.67 2.75 2.64 2.62 2.71 2.55

Overall time deposits rate 3.43 3.17 3.07 3.15 2.56 2.83 1.91 2.08 1.94 2.34 2.07 2.23 2.36

1-months 3.27 3.30 2.67 2.80 1.63 1.92 1.53 2.00 1.84 0.89 0.97 1.26 1.31

2-months 4.46 3.19 2.95 3.26 2.80 3.42 2.18 2.87 2.24 1.68 3.34 1.95 2.59

3-months 3.19 2.68 3.51 3.74 2.27 2.92 2.20 1.78 1.75 3.31 1.63 3.79 2.43

6-months 3.19 3.37 3.10 2.85 2.76 2.41 1.40 1.64 1.83 3.52 2.06 1.67 2.28

12-months 3.06 3.33 3.11 3.08 3.36 3.46 2.25 2.12 2.03 2.28 2.37 2.50 3.20

2. Overall lending rate 8.00 7.72 7.57 7.46 8.20 8.05 8.02 7.52 7.30 7.27 7.70 6.94 6.17

Short-term (up to 1year) 6.76 6.82 8.23 8.17 8.51 7.93 7.58 7.54 7.43 7.34 7.53 7.28 6.31

Medium-term (1-2 years) 8.38 8.20 5.91 5.39 8.41 8.39 8.56 8.61 8.63 8.64 7.98 7.99 5.03

Medium-term (2-3 years) 8.03 7.61 7.79 7.85 7.71 7.63 8.27 8.32 8.33 8.32 7.70 7.71 5.99

Long-term (3-5 years) 8.87 7.99 8.03 8.03 8.36 8.32 7.71 7.71 7.37 7.31 7.31 7.16 7.29

Term loans (over 5 years) 7.98 7.97 7.87 7.87 7.99 7.99 7.99 5.41 4.76 4.76 8.00 4.58 6.23

Source: Bank of Tanzania, banks and Bank of Tanzania computations

Note: r denotes revised data; and p, provisional data

Commercial bank rates have been revised from November 2012 backwards

2019

Items

20

Table A5: Tanzania Balance of Payments

Millions of USD

Item 2014 2015 2016 2017r

2018P

A. Current account -5,028.2 -3,987.4 -2,664.7 -1,813.9 -1,890.3

Goods: exports f.o.b. 5,194.1 5,316.8 4,949.7 4,523.9 4,379.6

Traditional 828.8 793.3 961.2 1,020.7 772.1

Non-traditional 3,798.6 4,040.1 3,538.5 3,091.9 3,209.3

o\w: Gold 1,324.1 1,183.3 1,508.8 1,541.1 1,524.0

Unrecorded trade 566.8 483.3 450.0 411.3 398.1

Goods: imports f.o.b. -10,917.8 -9,843.1 -8,463.6 -7,551.7 -7,752.0

Balance on goods -5,723.7 -4,526.3 -3,513.9 -3,027.8 -3,372.4

Services: credit 3,396.0 3,412.4 3,599.3 3,831.9 4,014.7

Transport 902.6 1,024.9 1,053.6 1,137.4 1,222.1

Travel 2,010.1 1,902.0 2,131.6 2,250.3 2,449.4

Other 483.2 485.5 414.1 444.2 343.2

Services: debit -2,648.3 -2,629.1 -2,176.4 -2,039.9 -2,131.2

Transport -1,142.6 -1,047.0 -893.7 -795.7 -839.1

Travel -1,101.6 -1,195.3 -922.3 -807.3 -738.1

Other -404.1 -386.8 -360.4 -436.9 -554.1

Balance on services 747.7 783.3 1,422.9 1,792.0 1,883.4

Balance on goods and services -4,976.0 -3,743.0 -2,091.1 -1,235.8 -1,489.0

Primary income: credit 118.4 110.3 98.5 125.3 155.9

o/w: Investment income 86.5 87.8 67.6 86.1 108.5

Compensation of employees 31.9 22.5 31.0 39.3 47.4

Primary income: debit -647.9 -834.6 -1,053.6 -1,105.4 -1,025.8

o/w: Direct investment income -445.0 -550.0 -625.2 -700.0 -683.7

Interest payments -150.9 -248.6 -379.9 -358.0 -302.1

Compensation of employees -49.1 -33.2 -46.1 -45.0 -37.6

Balance on primary income -529.5 -724.3 -955.1 -980.1 -869.9

Balance on goods, services and primary income -5,505.5 -4,467.3 -3,046.2 -2,215.9 -2,358.8

Secondary income: credit 535.5 560.1 452.7 485.2 535.8

Government 177.9 194.8 81.1 121.8 170.3

o\w: Miscelleneous current transfers (Multilateral HIPC relief) 0.0 0.0 0.0 0.0 0.0

Financial corporations, nonfinancial corporations, households and NPISHs 357.6 365.3 371.6 363.4 365.5

o/w: Personal transfers 357.6 365.3 371.6 363.4 365.5

Secondary income: debit -58.2 -80.2 -71.2 -83.2 -67.3

Balance on secondary income 477.3 479.9 381.5 402.0 468.5

B. Capital account 547.9 380.1 446.2 376.8 221.2

Capital transfers credit 547.9 380.1 446.2 376.8 221.2

General government 483.7 316.1 383.0 313.6 157.4

Other capital transfer (Investment grant) 457.9 290.3 357.3 287.8 151.4

Financial corporations, nonfinancial corporations, households and NPISHs 64.2 64.0 63.2 63.2 63.8

Capital transfers:debit 0.0 0.0 0.0 0.0 0.0

Total, groups A plus B -4,480.3 -3,607.3 -2,218.5 -1,437.1 -1,669.1

C. Financial account, excl. reserves and related items -3,109.0 -2,662.6 -1,745.4 -2,154.9 -1,741.3

Direct investments -1,416.1 -1,506.0 -864.0 -937.7 -1,056.0

Direct investment abroad 0.0 0.0 0.0 0.0 0.0

Direct investment in Tanzania 1,416.1 1,506.0 864.0 937.7 1,056.0

Portfolio investment -11.5 -27.6 5.0 -2.9 0.7

Other investment -1,681.4 -1,128.9 -886.4 -1,214.2 -686.0

Assets -28.8 331.8 -129.1 -117.8 363.3

Loans (Deposit-taking corporations, except the central bank) -24.8 186.9 -95.8 -34.5 35.2

Currency and deposits -3.9 144.9 -33.3 -83.4 328.0

Deposit-taking corporations, except the central bank -87.9 69.5 -150.1 -4.9 206.9

Other sectors 84.0 75.4 116.8 -78.5 121.1

Other assets 0.0 0.0 0.0 0.1 0.0

Liabilities 1,652.6 1,460.7 757.2 1,096.5 1,049.3

Trade credits -1.0 -0.1 0.2 9.7 21.4

Loans 1,639.2 1,558.2 826.3 1,103.9 990.3

Monetary authority 0.0 0.0 0.0 0.0 0.0

General government 1,202.6 1,089.9 306.8 707.0 654.6

Drawings 1,367.7 1,309.4 779.0 1,238.8 1,361.1

Repayments -165.1 -219.5 -472.3 -531.9 -706.5

Banks 14.6 97.3 209.2 176.1 -32.2

Other sectors 422.0 371.0 310.3 220.8 367.9

Drawings 494.5 547.4 453.3 318.9 467.6

Repayments -72.5 -176.4 -142.9 -98.1 -99.7

Currency and deposits 14.4 -97.5 -69.3 -17.1 37.6

Total, groups A through C -1,371.3 -944.7 -473.1 717.8 72.1

D. Net errors and omissions 1,119.5 745.6 778.7 951.9 -856.2

Overall balance -251.8 -199.1 305.5 1,669.6 -784.0

E. Reserves and related items -251.8 -199.1 305.5 1,669.6 -784.0

Reserve assets -307.3 -273.7 232.2 1,598.7 -871.9

Use of Fund credit and loans 55.5 74.6 73.3 70.9 87.9

Memorandum items:

CAB/GDP -10.1 -8.4 -5.4 -3.4 -3.3

CAB/GDP (excluding current official transfers) -10.5 -8.8 -5.5 -3.6 -3.6

Gross official reserves 4,377.2 4,093.7 4,325.6 5,900.3 5,044.6

Months of imports 4.2 4.6 5.4 7.2 5.2

Months of imports (excluding FDI related imports) 4.7 4.9 5.9 7.8 5.7

Exchange rate, TZS/USD (end of period) 1,725.8 2,148.5 2,172.6 2,230.1 2,281.2

Exchange rate, TZS/USD (annual average) 1,652.5 1,985.4 2,177.1 2,228.9 2,255.8

Source: Bank of Tanzania, Tanzania Revenue Authority, banks and Bank of Tanzania computations

Note: NPISH denontes non-profit institutions serving households; HIPC, heavily indebted poor countries; MDRI, multilateral debt relief initiative; GDP, gross domestic product; CAB, current account balance; FDI, foreign

direct investment; r, revised data; p, provisional data; and o/w, of which

21

Table A6(i): National Consumer Price Index (Urban and Rural), Twelve-Month Percentage Change (Main Groups)

Base: Dec 2015 = 100

Headline

overall

index

Food and non-

alcoholic

beverages Transport

Housing, water,

electricity, gas

and other fuel

Furnishing, housing

equipment and routine

maintenance of the house

Clothing

and

footwear

Restaurants

and hotels

Miscellaneous

goods and

services

Alcoholic,

tobacco and

narcotics Communication Education

Recreation

and culture Health

2018-Jan 4.0 6.3 0.3 7.1 1.8 2.7 0.8 2.6 2.6 -1.0 2.5 2.0 1.6

Feb 4.1 5.4 1.6 8.6 1.6 3.3 0.9 2.7 2.3 -0.2 2.5 1.5 1.6

Mar 3.9 4.7 1.4 10.4 1.9 3.2 0.8 1.2 2.0 -0.2 2.4 1.1 1.6

Apr 3.8 3.6 1.8 13.1 2.0 2.6 0.8 0.9 1.6 0.1 2.4 1.2 1.6

May 3.6 2.6 1.9 15.0 2.3 2.4 1.0 1.2 1.3 0.1 2.3 0.7 1.2

Jun 3.4 3.4 1.7 12.0 2.4 2.2 0.7 1.4 0.3 -2.6 2.6 0.5 1.4

Jul 3.3 2.8 2.5 12.3 2.6 2.4 0.8 1.2 0.8 -2.7 2.5 0.4 0.7

Aug 3.3 2.2 3.4 12.3 3.1 2.7 1.1 1.2 1.2 -2.6 2.5 -0.2 1.7

Sep 3.4 2.0 2.8 13.1 3.0 3.2 1.9 1.3 1.9 -2.6 2.5 -0.2 1.3

Oct 3.2 1.2 3.0 14.1 2.8 3.4 1.9 1.6 1.9 -2.7 2.4 -1.0 0.8

Nov 3.0 0.4 5.1 13.3 2.9 3.3 1.9 1.7 1.6 -2.7 2.4 -0.7 0.8

Dec 3.3 1.0 5.1 12.1 4.0 3.6 2.7 2.6 2.2 -2.6 2.4 0.1 1.0

2019-Jan 3.0 0.7 4.0 11.7 3.9 3.7 2.6 2.5 2.2 -2.4 2.0 0.2 1.0

Feb 3.0 0.5 3.3 12.3 4.1 3.3 3.6 2.6 2.5 -2.0 1.8 0.2 1.5

Mar 3.1 0.1 4.1 13.0 4.3 3.4 4.8 3.1 3.2 -1.2 1.9 0.3 1.8

Apr 3.2 0.9 3.4 11.4 4.2 3.6 4.9 2.7 3.2 -1.1 2.1 0.6 2.2

May 3.5 2.2 4.1 8.8 4.3 3.7 4.9 2.5 3.4 -1.1 2.1 3.2 2.0

Jun 3.7 2.3 4.8 8.9 4.1 3.1 4.8 2.4 4.2 1.0 1.8 3.4 1.8

Jul 3.7 2.9 4.1 8.1 3.9 2.7 4.7 2.5 3.6 1.1 1.6 1.6 2.3

Aug 3.6 3.7 2.7 6.3 3.7 2.9 4.6 2.5 2.1 0.7 1.6 1.8 1.4

Sep 3.4 4.0 3.2 4.3 3.7 2.6 4.2 2.4 1.3 0.6 1.6 2.0 1.9

Oct 3.6 5.1 2.4 3.3 3.9 2.2 4.1 2.3 1.3 0.8 1.6 1.7 1.8

Nov 3.8 6.1 0.4 3.7 3.9 2.3 4.0 2.1 1.3 0.8 1.6 1.4 1.8

Dec 3.8 6.3 0.8 4.4 2.7 2.2 3.2 1.8 0.6 1.1 1.6 1.4 1.5

2020-Jan 3.7 5.7 1.7 4.8 2.5 2.1 2.8 1.6 0.5 1.1 1.3 1.1 1.4

Source: National Bureau of Statistics

22

Table A6(ii): National Consumer Price Index (Urban and Rural), Twelve-Month Percentage Change (Other Selected Groups)

Base: Dec 2015 = 100

Period

Food (combining food consumed

at home and in restaurants)

Energy and fuels (combining

electricity and other fuels for use at

home with petrol and diesel)

Non-food (all

items less food)

All items less

food and energy

Weight (%) 37.1 8.7 62.9 54.3

2018-Jan 6.7 10.4 2.8 1.4

Feb 5.8 12.1 3.3 1.7

Mar 5.0 14.1 3.5 1.6

Apr 4.0 18.4 3.9 1.4

May 3.2 21.2 4.5 1.6

Jun 3.8 16.8 4.0 1.6

Jul 3.0 18.5 4.2 1.6

Aug 3.2 18.7 4.6 2.0

Sep 3.1 18.9 4.8 2.2

Oct 2.5 19.5 5.0 2.3

Nov 2.0 19.2 5.3 2.6

Dec 2.6 17.7 5.4 3.1

2019-Jan 2.3 15.7 5.1 3.1

Feb 2.3 15.4 5.1 3.1

Mar 2.0 15.5 5.7 3.7

Apr 2.7 13.3 5.3 3.6

May 3.9 10.5 4.7 3.5

Jun 4.3 11.0 4.7 3.4

Jul 4.9 9.3 4.2 3.1

Aug 5.0 6.3 3.5 2.9

Sep 5.1 4.6 3.1 2.7

Oct 6.0 3.0 2.7 2.6

Nov 6.7 3.0 2.4 2.2

Dec 6.9 2.8 2.3 2.1

2020-Jan 6.4 4.0 2.4 2.1

Source: National Bureau of Statistics

23

Table A6(iii): National Consumer Price Index (Urban and Rural), Month-on-Month Percentage Change (Main Groups)

Base: Dec 2015 = 100

Period

Headline

overall

index

Food and

non-alcoholic

beverages Transport

Housing, water,

electricity, gas

and other fuel

Furnishing, housing

equipment and routine

maintenance of the house

Clothing and

footwear

Restaurants

and hotels

Miscellaneous

goods and

services

Alcoholic,

tobacco and

narcotics Communication Education

Recreation

and culture Health

Weight (%) 100.0 38.5 12.5 11.6 6.3 8.3 4.2 3.1 3.7 5.6 1.5 1.6 2.9

2018-Jan 0.8 1.7 0.3 0.1 0.4 0.4 0.4 0.2 0.1 0.0 1.8 0.3 0.2

Feb 1.1 1.4 0.8 2.7 0.2 0.6 0.2 0.1 0.0 0.2 0.2 0.0 0.0

Mar 1.2 2.1 0.2 2.4 0.7 0.1 0.1 -0.1 0.0 0.0 0.0 0.0 0.0

Apr 0.4 0.3 0.8 1.6 0.3 0.1 0.0 0.7 0.0 0.0 0.0 0.1 0.0

May 0.0 -0.7 -0.3 2.4 0.3 0.2 0.1 0.4 -0.1 0.0 0.0 -0.4 0.2

Jun -0.4 0.0 -0.8 -1.4 0.1 0.4 -0.2 0.1 -0.8 -2.7 0.3 -0.2 0.2

Jul -0.3 -1.3 0.8 0.4 0.3 0.4 0.1 0.0 0.5 -0.1 0.1 0.0 -0.5

Aug -0.4 -1.9 0.6 1.7 0.3 0.2 0.2 -0.1 0.8 0.0 0.0 0.1 0.9

Sep 0.1 -0.6 -0.3 2.1 0.0 0.4 0.7 0.1 0.8 0.1 0.0 0.2 -0.4

Oct -0.3 -1.0 0.5 0.6 0.0 0.2 0.0 0.0 0.0 -0.1 0.0 -0.5 0.0

Nov 0.3 -0.1 2.3 0.3 0.2 0.0 0.2 0.2 0.0 0.0 0.0 0.3 0.0

Dec 0.5 1.1 0.3 -1.3 1.3 0.6 0.8 0.9 0.8 0.1 0.0 0.3 0.3

2019-Jan 0.5 1.4 -0.8 -0.3 0.3 0.5 0.4 0.2 0.1 0.2 1.4 0.3 0.1

Feb 1.1 1.3 0.1 3.3 0.4 0.2 1.2 0.2 0.3 0.5 0.0 0.1 0.5

Mar 1.4 1.7 1.0 3.1 0.8 0.2 1.3 0.5 0.7 0.9 0.1 0.1 0.4

Apr 0.5 1.0 0.2 0.1 0.2 0.2 0.1 0.3 0.0 0.0 0.1 0.4 0.4

May 0.4 0.6 0.3 0.1 0.4 0.3 0.0 0.2 0.0 0.0 0.0 2.2 0.0

Jun -0.2 0.2 -0.1 -1.3 0.0 -0.1 -0.2 -0.1 0.0 -0.6 0.0 0.0 0.0

Jul -0.4 -0.7 0.0 -0.4 0.1 0.0 0.0 0.1 0.0 0.0 0.0 -1.8 0.0

Aug -0.5 -1.1 -0.6 0.1 0.1 0.5 0.0 -0.1 -0.8 -0.4 0.0 0.4 0.1

Sep -0.1 -0.3 0.1 0.1 0.0 0.0 0.3 0.0 0.0 0.0 0.0 0.4 0.0

Oct -0.1 0.1 -0.4 -0.3 0.1 -0.1 -0.9 -0.1 0.0 0.1 0.0 -0.1 0.0

Nov 0.5 0.8 0.3 0.6 0.1 0.1 0.1 0.0 0.0 0.0 0.0 0.0 0.0

Dec 0.6 1.3 0.7 -0.6 0.2 0.5 0.0 0.5 0.2 0.3 0.0 0.3 0.0

2020-Jan 0.4 0.9 0.1 0.1 0.2 0.3 0.0 0.0 0.0 0.2 1.0 0.1 0.0

Source: National Bureau of Statistics

24

Table A6(iv): National Consumer Price Index (Urban and Rural), Month-on-Month Percentage Change (Other Selected Groups)

Base: Dec 2015 = 100

Period

Food (combining food consumed

at home and food consumed in

restaurants)

Energy and fuels (combining

electricity and other fuels for use at

home with petrol and diesel)

Non-food (all

items less food)

All items less

food and energy

Weight (%) 37.1 54.3 8.7 62.9

2018-Jan 1.8 0.3 0.3 0.3

Feb 1.5 0.4 3.7 0.9

Mar 2.2 3.3 0.6 0.1

Apr 0.3 2.3 0.6 0.2

May -0.5 3.0 0.7 0.3

Jun -0.1 -1.9 -0.4 0.0

Jul -1.3 1.1 0.4 0.2

Aug -1.2 2.1 0.6 0.3

Sep -0.5 2.1 0.5 0.2

Oct -0.8 0.8 0.2 0.1

Nov 0.3 1.1 0.5 0.4

Dec 1.1 -1.2 0.2 0.5

2019-Jan 1.5 -1.4 0.0 0.3

Feb 1.4 3.4 0.9 0.4

Mar 1.9 3.4 1.2 0.7

Apr 1.0 0.3 0.2 0.2

May 0.6 0.4 0.2 0.2

Jun 0.3 -1.4 -0.4 -0.1

Jul -0.7 -0.5 -0.1 0.0

Aug -1.1 -0.7 0.0 0.1

Sep -0.4 0.3 0.1 0.0

Oct 0.1 -0.7 -0.1 0.0

Nov 0.9 1.1 0.2 0.0

Dec 1.3 -1.3 0.1 0.5

2020-Jan 1.1 -0.3 0.1 0.2

Source: National Bureau of Statistics

25

Table A7: National Debt Developments

Millions of USD

Item Feb-19 Mar-19 Apr-19 May-19 Jun-19 Jul-19 Aug-19 Sep-19 Oct-20 Nov-19 Dec-19r

Jan-20P

1. Overal external debt committed2

29,292.5 28,989.4 28,882.3 29,110.6 29,573.9 29,515.5 29,889.3 30,012.4 30,827.8 30,857.3 30,941.4 30,882.3

Disbursed outstanding debt 19,723.8 19,641.3 19,715.1 19,755.2 20,029.3 20,287.1 20,387.0 20,496.8 20,443.2 20,500.0 20,478.2 20,491.6

Undisbursed debt 9,568.7 9,348.1 9,167.2 9,355.4 9,544.6 9,228.4 9,502.3 9,515.6 10,384.6 10,357.3 10,463.2 10,390.7

2. Disbursed external debt by creditor category2

19,723.8 19,641.3 19,715.1 19,755.2 20,029.3 20,287.1 20,387.0 20,496.8 20,443.2 20,500.0 20,478.2 20,491.6

Bilateral debt 1,033.0 1,033.4 1,035.4 1,041.8 1,057.1 1,051.5 1,063.3 1,057.1 1,052.2 1,048.2 1,061.3 1,061.8

Multilateral debt 9,862.2 9,852.6 9,848.5 9,885.4 9,966.4 9,736.7 9,664.2 9,898.4 10,033.1 10,214.6 10,287.9 10,305.8

Commercial debt 6,779.4 6,705.6 6,818.4 6,800.9 6,922.8 7,421.8 7,652.5 7,522.2 7,335.3 7,251.6 7,136.8 7,103.8

Export credits 2,049.2 2,049.7 2,012.8 2,027.1 2,083.0 2,077.1 2,007.0 2,019.1 2,022.6 1,985.6 1,992.2 2,020.2

3. Disbursded external debt by borrower category2

19,723.8 19,641.3 19,715.1 19,755.2 20,029.3 20,287.1 20,387.0 20,496.8 20,443.2 20,500.0 20,478.2 20,491.6

Central government 15,435.5 15,369.1 15,441.0 15,476.6 15,727.2 15,804.4 16,223.5 16,382.5 16,520.3 16,664.5 16,621.8 16,583.5

Public corporations 125.8 125.2 126.7 124.7 95.0 94.2 82.6 82.4 83.0 82.9 74.7 74.6

Private sector 4,162.5 4,147.0 4,147.4 4,153.9 4,207.1 4,388.5 4,080.9 4,031.9 3,839.9 3,752.6 3,781.7 3,833.5

4. Disbursed external debt by use of funds2

19,723.8 19,641.3 19,715.1 19,755.2 20,029.3 20,287.1 20,387.0 20,496.8 20,443.2 20,500.0 20,478.2 20,491.6

Balance of payments and budget support 2,955.1 2,948.4 2,931.3 2,926.8 2,836.4 2,821.6 2,823.9 2,792.7 2,796.3 2,795.1 2,725.1 2,718.0

Transportand telecommunication 4,312.0 4,296.0 4,382.0 4,425.3 4,634.0 4,957.3 5,304.1 5,462.0 5,386.5 5,464.2 5,503.8 5,505.5

Agriculture 1,251.0 1,252.0 1,248.0 1,246.0 1,256.0 1,253.0 1,258.0 1,251.7 1,250.0 1,295.0 1,300.0 1,288.0

Energy and mining 3,068.7 3,093.0 3,067.0 3,070.0 3,105.0 3,097.0 3,082.0 3,068.4 3,069.0 3,051.0 3,075.0 3,050.0

Industries 657.0 662.0 660.0 658.0 666.0 663.0 640.0 639.0 639.0 639.0 649.0 652.0

Social welfare and education 3,150.8 3,150.4 3,201.0 3,209.0 3,254.0 3,237.0 3,272.0 3,401.0 3,422.0 3,446.0 3,470.0 3,497.0

Finance and insurance 1,222.2 1,218.0 1,193.0 1,191.0 1,186.0 1,182.0 1,018.0 1,016.0 1,009.0 1,009.0 1,012.0 1,074.0

Tourism 152.0 152.0 171.0 171.0 171.0 171.0 169.0 169.0 169.0 169.0 173.0 172.0

Real estate and construction 1,091.0 1,072.0 1,071.0 1,069.0 1,109.0 1,117.0 1,113.0 1,099.0 1,100.0 1,032.0 1,034.0 1,034.0

Other 1,864.0 1,797.5 1,790.8 1,789.1 1,811.9 1,788.2 1,707.0 1,598.0 1,602.4 1,599.7 1,536.3 1,501.1

5. Total amount of external loan contracted1

59.9 12.4 17.1 3.9 4.0 1.6 98.7 3.5 18.0 0.1 9.3 0.0

Central government 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

Public corporations 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

Private sector 59.9 12.4 17.1 3.9 4.0 1.6 98.7 3.5 18.0 0.1 9.3 0.0

6. Disbursements1

299.1 63.8 174.0 61.2 291.7 335.2 609.2 102.3 111.2 184.7 237.8 105.4

Central government 260.9 62.3 173.9 60.5 261.5 334.6 529.4 102.3 111.2 184.6 58.7 53.8

Public corporations 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

Private Sector 38.2 1.5 0.1 0.7 30.2 0.6 79.8 0.0 0.0 0.1 179.1 51.6

7. Actual external debt service1

83.3 131.2 54.8 60.1 160.6 3.9 387.9 146.2 191.0 283.0 366.5 83.3

Principal 70.2 97.7 37.7 27.1 114.4 0.8 364.9 117.7 176.2 249.0 319.1 61.2

Interest 13.1 33.5 17.1 33.0 46.2 3.1 23.0 28.5 14.8 34.0 47.4 22.1

Other payments 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

8. Net flows on debt1

228.9 -33.9 136.3 34.1 177.3 334.4 244.3 -15.4 -65.0 -64.3 -81.3 44.2

9. Net transfers on debt1

215.8 -67.4 119.2 1.1 131.1 331.3 221.3 -43.9 -79.8 -98.3 -128.7 22.1

10. Arrears by creditors category2

4,602.8 4,728.5 4,732.6 4,725.5 4,789.3 4,863.3 4,604.3 4,557.3 4,671.9 4,527.6 4,720.4 4,852.6

Principal 2,752.0 2,849.8 2,859.8 2,844.6 2,897.6 2,918.0 2,726.2 2,673.5 2,765.2 2,710.1 2,805.2 2,887.8

Bilateral debt 321.2 318.1 321.2 318.7 320.7 319.9 316.2 314.8 315.5 319.7 327.3 332.3

Multilateral debt 133.4 142.1 116.9 117.6 117.2 118.2 110.6 117.9 145.7 120.0 125.5 125.2

Commercial debt 1,156.2 1,223.9 1,263.5 1,260.1 1,281.5 1,286.4 1,241.7 1,167.3 1,210.5 1,187.8 1,204.5 1,252.8

Export credits 1,141.2 1,165.7 1,158.2 1,148.2 1,178.2 1,193.5 1,057.7 1,073.5 1,093.5 1,082.6 1,147.9 1,177.5

Interest 1,850.8 1,878.7 1,872.8 1,880.9 1,891.7 1,945.3 1,878.1 1,883.8 1,906.7 1,817.5 1,915.2 1,964.8

Bilateral debt 891.2 892.6 893.3 894.9 901.4 900.3 901.8 902.6 908.4 911.2 950.0 952.1

Multilateral debt 41.7 43.4 29.0 29.0 25.2 25.3 28.6 30.0 34.7 34.9 36.5 35.0

Commercial debt 534.1 549.6 553.9 552.8 536.2 589.7 586.9 583.9 591.9 508.9 541.9 549.4

Export credits 383.8 393.1 396.6 404.2 428.9 430.0 360.8 367.3 371.7 362.5 386.8 428.3

11. External debt stock 21,574.6 21,520.0 21,587.9 21,636.1 21,920.9 22,232.4 22,265.1 22,380.6 22,349.9 22,317.5 22,393.4 22,456.4

12. Domestic debt stock 6,146.1 6,162.2 6,483.5 6,778.7 6,491.8 5,957.2 6,148.0 6,141.7 6,198.6 6,313.6 6,309.3 6,396.1

13. Total debt stock 27,720.6 27,682.2 28,071.4 28,414.7 28,412.8 28,189.6 28,413.1 28,522.3 28,548.5 28,631.1 28,702.7 28,852.4

End of period selling exchange rate (TZS/USD) 2,289.0 2,289.5 2,289.5 2,288.6 2,289.5 2,289.2 2,289.4 2,289.4 2,288.8 2,288.3 2,287.9 2,288.6

Source: Ministry of Finance and Planning, Bank of Tanzania, banks and Bank of Tanzania computations

Note: Multilateral arrears are those owed by the private sector; 1 denotes debt flows during the period;

2 stock position at the end of the period; r, revised data; and p, provisional data

26

Glossary

Broad money (M2)

A definition of money that comprises of narrow

money (M1) plus domestic currency time and

savings deposits of residents with banks in the

country.

Currency in circulation outside banks

Notes and coins of Tanzanian shillings

circulating outside the banking system, i.e.,

outside the Bank of Tanzania and other

depository corporations.

Core inflation

This is a measure of price movements caused

by factors other than food and energy prices

over a specified period of time. It provides

better indication of the effectiveness of

monetary policy.

Disbursed outstanding debt

This is the amount of debt that has been

disbursed but yet to be paid back or forgiven.

Discount rate

The rate of interest that the Bank of Tanzania

charges on loans it extends to banks. It uses

Treasury bills rate as a base plus a loaded

factor, which can be changed from time to time

depending on the liquidity situation in the

market.

Exchange rate

The price at which one unit of a currency can

be purchased with another currency, for

instance TZS per US dollar.

Extended broad money (M3)

A definition of money that consists of broad

money (M2) plus foreign currency deposits of

residents with banks in the country.

Food inflation

This is a measure of price movements caused

by food prices.

Gross official reserves

Gross official reserves consist of external

assets that are readily available to, and

controlled by the Bank of Tanzania for direct

financing of balance of payments, and for

indirectly regulating the magnitude of balance

of payments imbalances through intervention in

foreign exchange markets. Gross official

reserves comprise the Bank of Tanzania’s

holdings of monetary gold, special drawing

rights (SDRs), reserve position in the

International Monetary Fund, and foreign

exchange resources, available to the Bank of

Tanzania for meeting external financing needs.

Inflation

The rate at which the average level of prices of

a basket of selected goods and services in an

economy is increasing over a period of time. It

is often expressed as a percentage. Inflation

indicates a decrease in the purchasing power of

a nation's currency.

Interbank cash market

A money market in which banks extend loans

to one another for a specified term of not more

than 90 days. Each transaction represents an

agreement between the banks to exchange the

agreed amounts of currency at the specified

rate on a fixed date.

Lombard facility

An overnight facility established to enable

banks to borrow from the Bank of Tanzania at

their own discretion, by pledging eligible

government securities as collateral.

Lombard rate

The rate that the Bank of Tanzania charges a

bank for borrowing through the use of a

Lombard Facility. This rate is computed basing

on the prevailing weighted average yield of 35-

day T-bill, repo or overnight inter-bank rate,

whichever is higher in the market plus a margin.

Money supply

The sum of currency circulating outside the

banking system and deposits of residents with

banks defined in various levels of aggregation.

In Tanzania, three aggregates of money supply

are compiled and reported, namely; narrow

money (M1), broad money (M2), and extended

broad money (M3).

Non-food inflation

This is a measure of price movements caused

by factors other than food prices.

27

Narrow money (M1)

Consists of currency in circulation outside

banking system plus demand deposits (cheque

account) of residents with banks in the country.

National debt

Total national debt obligations that include

public debt and private sector external debt.

Public debt

Debt payable or guaranteed by the

Government. Tanzania’s public debt has two

main components, domestic debt (which is

incurred principally to finance fiscal deficit) and

external debt (which is raised primarily to

finance development projects. It comprises of

the debt central government owes to foreign

creditors and external obligations of

government departments and agencies that are

guaranteed for repayment by the Government).

Overnight interbank cash market

The component of the money market involving

the shortest term loan. Lenders agree to lend

borrowers funds only "overnight" i.e. the

borrower must repay the borrowed funds plus

interest at the start of business the next day.

Repurchase agreements (repo)

An arrangement involving sale of securities at a

specified price with commitment to repurchase

the same or similar securities at a fixed price on

a specified future date.

Reverse repo

An arrangement involving buying of securities

at a specified price with commitment to resale

the same or similar securities at a fixed price on

a specified future date.

Reserve money (M0)

The Bank of Tanzania’s liabilities in the form of

currency in circulation outside the banking

system, cash held by banks in their vaults and

deposits of banks kept with the Bank of

Tanzania in national currency. Reserve money

is also referred to as base money, or monetary

base or high-powered money.

Weighted yields of Treasury bills

This is the average yield of Treasury bills, which

is weighted by the volume sold of 35-day, 91-

day, 182-day, and 364-day Treasury bills,

expressed in percentage per year.

28

For enquiries please contact: Directorate of Economic Research and Policy

Bank of Tanzania, 2 Mirambo Street 11884 Dar Es Salaam

Tel: +255 22 223 3328/9

This report is also available at http://www.bot.go.tz